As we finish the first week of April 2020, the cryptocurrency markets are starting to look a little more promising. Bitcoin has finally managed to break above the triangle that we have been tracking over the past few weeks as it climbs above $7,000 and reaches as high as $7,400. The next test for the number 1 ranked cryptocurrency will be the $8,000 to mark an almost complete recovery from the cryptocurrency wipeout seen in March 2020.
Putting that to the side, today I would like to talk about an energy democratization project that has the potential to surge by over 400% if Bitcoin can continue its climb toward $10,000 over the next few months.
This project I speak of is called Power Ledger!
Firstly, let us take a look at the performance of Power Ledger (POWR) below from January 2019 until today;
Looking at the daily chart above, we can see that POWR experienced a great first half to the year of 2019 as it managed to climb above $0.13 during April 2019. However, throughout the summer months we can see that POWER started to slide quite aggressively (surprising considering this is a solar energy project :p).
It continued to slide further lower throughout the winter months until it closed the year at a price of around $0.35.
During February of 2020, we can see that POWR woke up particularly well as it surged as high as $0.12. Unfortunately, it was not exempt from the March 2020 cryptocurrency bloodbath as POWER dropped back toward the mean at $0.045. It has since started to climb again as it currently attempts to break $0.06 as of early April 2020.
Power Ledger is a well established P2P energy transmission market that allows users to sell their excess generated energy to their neighbors in a decentralized manner through the power of blockchain.
As global warming continues to drive the topic of our energy crisis, projects such as Power Ledger are seeking to find solutions to do their tiny little part in preventing any catastrophic disaster.
People are always looking for new ways to obtain clean and renewable energy, however, many of them do not have the luxury to have the capabilities of installing solar panels on their roofs. Power Ledger gives these people an option to obtain clean energy at extremely low prices.
Most importantly, it removes the middle man from the equation!
The project can already boast about the release of many products that already can facilitate this process - reaching a stage of production that most other cryptocurrency projects could only dream about as they remain trapped in their whitepaper phases!
However, there is much more still to come from Power Ledger. Especially when we see the rollout of their highly anticipated Virtual Power Plant V2.0 expected during Q1/Q2 of this year!
We can already see the impact that VPPs will have on Power Ledger as we see the network growth for the project spiking (more on this below).
For the reasons stated above, and more discussed below, I believe that POWR has the potential to surge by a total of 400% from the current trading price ($0.059) to reach my 2020 price prediction of $0.30.
In this article, I’ll firstly cover a range of topics that I believe will influence POWR in reaching my $0.30 target during 2020 and then analyze POWR on the daily chart to highlight some areas of resistance on the way toward the target.
What Is Power Ledger (POWR)?
Power Ledger is a blockchain-based solution that allows local areas to distribute and sell their self-generated solar power to their neighbors without the need to go through a middleman. The platform is stated to bring in an option for cheaper, cleaner, and more sustainable energy for users in a community to buy and sell.
It can be considered as a peer-to-peer energy trading market in which transactions of both energy generation and consumption are recorded on the platform in real-time.
In layman terms, if you happen to have solar panels installed on your roof you have the opportunity to sell your excess energy directly to your neighbor - instead of selling it back to the grid. Furthermore, if you have a battery storage device (such as a Tesla Power Wall) you can store energy during the day and sell it during peak hours to maximize profits from any generated solar power energy.
It was founded in May 2016 in Australia and went on to raise over $13 million during its ICO in October 2017. Interestingly, it was actually the first ICO project to come out of Australia.
The platform consists of five different products;
- xGrid - allows users to buy and sell energy on the existing electrical grid through P2P transactions. This gives access to low-cost renewable energy to everybody - even if they cannot house solar panels on their roofs. Households are able to set their own prices to reflect the supply and demand.
- uGrid - similar to xGrid as it allows users to buy and sell energy on an existing microgrid such as within apartment buildings, shopping centers, retirement villages, and office buildings.
- Power Port - Allows users to choose the source for the power that charges their cars. Aimed to bring transparency to electric vehicle charging. Power Port also sets price alerts for electric vehicle stations which activates charging at times when power prices are the lowest.
- C6 & C6+ - uses blockchain technology to track and validate carbon credits
- Asset Germination - a platform for the monetization of excess renewable energy
The entire Power Ledger ecosytem operates on two different blockchains; the Ethereum blockchain and their own enterprise blockchain, Ecochain. It also uses two different tokens; POWR and Sparkz.
POWR allows application hosts and users (energy buyers) to access the platform. They cannot get onto the Power Ledger network unless they own POWR. POWER is then traded and put into escrow via Ethereum based smart contracts in exchange for Sparkz.
Sparkz can also be bought with fiat currency which will then be traded for electricity. They are used and destroyed to get back POWR and are, thus far, tied to the price of the Australian Dollar.
To find more about the history of Power Ledger, the POWR and Sparz tokens, and how the platform works - take a look at this article.
Furthermore, to learn about the team and some of the great partnerships of Power Ledger, take a look at this article.
Actual Live Working Product
The great thing about Power Ledger is the fact that it already has live working products - live and working right now!
Following is a small selection of working products right now across the world.
Bangkok - Thailand
BCPG, a Thai renewable energy business, and the Thai Utility Metropolitan Electricity Authority are using Power Ledger within a precinct of 700 kW solar capacity that produces an average of 10MWh per day.
Wyomissing - USA
American PowerNet is using Power Ledger at its headquarters to trade solar energy from its rooftop set-up with its neighbors in the office park. Around 35% of the energy for the park is now produced by solar energy each month.
White Gum Valley - Australia
The Evermore apartment complex is using Power Ledger’s platform with its solar PV panels and battery storage solutions. The complex produces around 160 kWh renewable energy daily and processes around 200 transactions on Power Ledger every hour.
Network Growth On The Rise
A great metric to look out for is network growth from Santiment. You can easily tell if a project is failing if its network growth remains static for a long period of time. For Power Ledger, we can see that, although the network growth does look pretty flat, there have been some huge spikes to show there is still strong interest within the project;
Furthermore, if we are to look at additional data from Santiment to show the daily active addresses, we can see a clear increase in the number during the early period of 2020.
Both of these metrics prove that Power Ledger is not eating dirt and is showing some form of sustained growth.
Virtual Power Plant
One of the great things to watch develop this year will be the continued expansion of Virtual Power Plants from Power Ledger.
VPP is an extension of the product range that Power Ledger already offers as it is a network of consumer-generated solar energy and battery systems that pool their stored energy. This energy pool is then fed back into the main electrical grid when demand is at its peak for a maximized profit.
Power Ledger and an energy retailer, Powerclub, have teamed with Natural Solar, a large solar battery manufacturer to start rolling out phase one of the VPP in South Australia during Q1 of 2020.
The VPP will connect these solar and battery systems to cloud-based software that will manage the flow of clean electricity for electricity providers to maximize their revenue. It is designed so providers can pay back their investment into the system faster and eventually make a profit.
The VPP actively monitors the energy markets and sets price spike alerts that allow energy retailers to automatically draw power from the VPP.
You can find out more about this initiative here.
Power Ledger (POWR) Price Analysis
LONG TERM - DAILY CHART
What Has Been Going On?
Taking a look at the daily chart above we can clearly see the year of 2019 is split into two opposite halves for POWR. The first half of the year saw the cryptocurrency slowly grinding to a high of around $0.13 whilst the second half of the year saw the cryptocurrency slowly unwinding to drop as low as $0.03 to close the year.
However, in 2020 we can see POWR starting to awaken as it managed to surge by a total of around 250% to the high-day closing price of $0.12. It had spike even higher toward $0.167 (+388% price increase) but this was short-lived.
During March 2020, we can see the effect of the cryptocurrency capitulation which was driven by the Coronavirus pandemic. POWR slipped from a high of around $0.12 as it dropped by a total of 60% to reach the support at $0.044 which is provided by a short term .886 Fibonacci Retracement level.
It has since rebounded from here as it now attempts to break above the $0.06 resistance during the first week of April 2020.
Are We Bullish Or Bearish (as of April 2020)?
We are neither bullish nor bearish. A drop back beneath $0.044 would turn POWR bearish, although, this is unlikely to happen. On the other side, POWR would actually need to close above $0.07 to turn bullish in the short term but it would really need a close above $0.12 to turn bullish over the long term to reach my 2020 price target.
If the sellers do step in and push lower, support can be found at $0.052 (.786 Fib Retracement), $0.044 (.886 Fib Retracement), and $0.034 (2020 opening price).
Where Is The Resistance On The Way Up TO $0.30?
Once the resistance at $0.06 is broken, the bulls will firstly have to contest strong resistance at $0.085 - provided by a short term bearish .382 Fib Retracement. This is followed by resistance at $0.10 (short term bearish .5 Fib Retracement), and $0.116 (short term bearish .618 Fib Retracement).
Beyond this, strong resistance lies at $0.129 which is provided by a long term bearish .236 Fib Retracement level - drawn in red. This is measured from the July 2018 high to the 2019 price low. Above this, resistance lies at $0.144 (1.272 Fib Extension), $0.156 (1.414 Fib Extension), $0.174 (1.618 Fib Extension), and $0.187 (bearish .382 Fib Retracement).
If the bulls can continue to drive POWR above the $0.2 level, higher resistance is to be expected at $0.21, $0.234 (bearish .5 Fib Retracement), $0.25, and $0.268.
If they can continue to clear resistance at $0.281 (bearish .618 Fib Retracement), they will be clear to make an attempt at my 2020 price target of $0.30.
POWR has some very strong fundamentals behind it including its use-case, team, and ethos. But the most important reason as to why POWR will continue to drive higher is the simple fact that they already have working products within their industry.
As more people start to use the Power Ledger platform, we can expect the need for POWR to increase which will also be followed by a hike in the prices. Furthermore, with the expansion of their product range into VPP 2.0 we can expect this growth to be exponential.
Given all that, my long term prediction is bullish, and if we hit the target of 400% we can see the price $0.30.