Lambda probably saw one of the largest price surges in 2019 as it increased by almost 3000% from the February 2019 low to the July 2019 high of $0.27.
Unfortunately, it couldn’t sustain these highs and eventually rolled over and dropped by 91% to the 2019 low of $0.0248.
The good news is that it did manage to increase by around 100% from the 2019 open to the 2019 close. This is likely due to the fact that it only started to trade toward the start of 2019 - but any return is still a good profit!
Take a look at the majestic price increase and subsequent plummet below;
We can see clearly see the Q1 and Q2 price surge driving LAMB all the way up above the $0.24 level. However, we can see that it could not hold above this level and went on to plummet during the late summer months. Luckily, we can see that it stabilized during the winter of 2019 after the cryptocurrency clocked in a low of around $0.0248.
Nevertheless, Lambda is a pretty solid project with some great upcoming features in the pipeline. They are finishing up their third round of testing of their decentralized storage solution and once this is complete we can expect the userbase to start gaining some traction. In fact, once this is complete, we could potentially even expect large scale enterprises to enter into the ecosystem.
For the reason stated above, and more discussed below, I believe that LAMB has the potential to surge by a further 384% in 2020 to reach my target price of $0.18 at some point during the year.
In this article, I’ll firstly cover a range of topics that I believe will influence LAMB in reaching my $0.18 target during 2020 and then analyze LAMB on the daily chart to highlight some areas of resistance on the way toward the target.
What Is Lambda?
Lambda is a relatively new project especially when we consider the fact that their mainnet was only released in 2019 after they released their code during Q3 of 2018.
It is a project created to tackle the cloud storage problem and to create a new type of economic model in the software industry with the help of blockchain.
Their economic model includes two different asset tokens; LAMB and TBB.
The LAMB token is the typical blockchain token we see from every project. On the other side, the TBB token represents 1TB of capacity on their data storage solution.
Their economic model is pretty different from other projects as it involves novel ideas such as “pledge rewards” and it involves many different users within the network. To find out more about their economic model that supposedly serves everybody, take a look at this post from the Lambda team themselves.
Along with becoming a decentralized cloud storage solution, they also have a platform marketplace in which products and services can easily be bought.
It was launched in 2018 after they raised $20 million in a fundraising round through Tether (USDt).
Their decentralized storage solution will present many opportunities for dApp storage and security. Furthermore, they claim that the throughput of the network can currently hit 5000 Transactions Per Second (TPS) which is significantly higher than the 21 TPS of Ethereum and the 7 TPS seen in Bitcoin.
There are 4 main types of “roles” within the Lambda ecosystem;
- Storage Miners - Provide storage for the cloud solution.
- Retrieval Miners - “Retrieve” the data from the storage miners to give back to users.
- Validators - Validate the data provided from retrieval miners before it reaches the users.
- Users - Use the platform for storage and browsing the marketplace.
To find out more about lambda, take a look at this great write up which goes into more detail about how it works and the team behind the project.
What Is Yet To Come In 2020?
The main thing we can expect in 2020 is the upgrade of the recently launched mainnet. This will see Lambda going live into a real-life scenario in which everyone can easily participate.
As of February 2020, the team announced its last phase of storage testing. This is expected to be the last round of testing before the mainnet is upgraded so we can expect it to come pretty soon.
The first 2 phases of testing met all expectations as thins such as storage verification, miner-side storage management, storage business processes, and mining pool architecture were vigorously tested.
The last phase is expected to test things such as storage verification by verification nodes within the consensus network, testing large-scale storage by the storage miners, and the testing of issued assets and dApps on the Lambda network.
Once this final phase of storage testing is complete, we can expect more users to enter the mainnet. Currently, there are just under 1000 storage miners and only 73 validators.
According to their roadmap, we can expect the signing up for commercial customers and allow access to commercial storage applications in Q1/Q2. In Q3/Q4 we can expect them to focus on improving their distributed storage technology and develop additional technologies and projects to expand the Lambda ecosystem.
Developmental Activity Back On The Rise
According to data from Santiment, the developmental activity is back on the rise again. This is a good sign as it shows the team are gearing up for further developmental progress after a brief slowdown toward the end of January 2020;
Another statistic to point out from Santiment is the slow but STEADY since the beginning of 2020;
We can see that the daily active users are still around the 150 level, however, it has started to slowly climb higher over the past 3 months. I would be watching this statistic closely as an increase in the number of users on the network will indicate network growth for Lambda.
Lambda (LAMB) Price Analysis
LONG TERM - DAILY CHART
What Has Been Going On?
Taking a look at the daily chart above, the Q3 price plummet is immediately apparent. The cryptocurrency dropped from the high above $0.27 and continued to plummet until finding support at $0.0248 during October 2019.
It did rebound from here during October, however, it ran into the resistance at $0.075 provided by the bearish .382 Fib Retracement. LAMB went on to test the support at $0.0248 a number of times throughout the end of the year but the bulls always managed to defend this support.
Lamb has started to increase during 2020 as it has risen by around 87% from low to high - reaching resistance at $0.046.
Are We Bullish Or Bearish (as of February 2020)?
As of February 2020, the market is sitting in a neutral trading condition. It must break above resistance at $0.075 (October 2019 high) before we can consider it to be bullish. If it was to drop beneath the $0.0248 support, the market would turn bearish.
Toward the downside, there is support at $0.035, $0.029, and $0.0248. Beneath this, things would turn bearish and, in this case, LAMB would probably not reach my 2020 target.
Where Is The Resistance On The Way Up TO $0.18?
On the other side of things, the first level of resistance to break for the bulls lies at $0.046. Above this, additional resistance lies at $0.05 and $0.057. If the buyers can go on to clear resistance at $0.07, they will meet higher resistance at $0.0075 which is provided by a bearish .328 Fib Retracement level and is also the October 2019 high.
This bearish Fibonacci Retracement is measured from the $0.158 uptick in early September 2019 to the 2019 low at $0.0248.
Above this, the bulls can expect resistance at $0.08, $0.0917 (bearish .5 Fib Retracement), and $0.0968 (1.414 Fib Extension). If they can continue to drive above $0.1, resistance is to be expected at $0.107 (bearish .618 Fib Retracement and 1.619 Fib Extension).
From here, higher resistance is located at $0.12, $0.13 (bearish .786 Fib Retracement), $0.143 (bearish .886 Fib Retracement), and $0.158.
If the buyers can go on to drive above $0.16, they will only need to break above $0.17 before being clear to make an attempt at my 2020 price target of $0.18.
Although a 380% price increase may seem a little steep, we have to remember that LAMB actually increased by almost 3000% in 2019 - so 380% seems pretty conservative. The project is still in the very late developmental/testing stage and once this process is complete we can expect them to start building the userbase for the platform.
Once large scale enterprises start to come on board to secure their data and dApps start to realize that deploying on Lambda is a solid option, LAMB could probably go on and double my 2020 price target.