ICON (ICX), Zilliqa (ZIL) and Siacoin (SIA) are showing very promising signs during the dump !

ICON (ICX), Zilliqa (ZIL) and Siacoin (SIA) are showing very promising signs during the dump !

By Djordi | DJCrypto | 6 Sep 2020


Hi everyone,

This will be a quick post that will show something very interesting. During the dump we are experiencing right now, I always like to watch the weekly chart and the indicator OBV, which stands for On Balance Volume. This indicator shows accumulation and distribution. In other words, what is the smart money doing. You should always use different indicators and not just one, but I will show you some interesting things.

Here is the weekly chart of ICON (ICX) :

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Look at the price dump and towards which levels it is right now and then look at the drop in OBV. The drop in OBV is hardly there ! This is a very interesting development and it seems smart money is accumulating ICON.

Here is a weekly of Zilliqa (ZIL) :

2a98108163c5cb4a00ce536abef60660800e89b9fbd23ca8dce200639827e9aa.png

Once again OBV is looking very strongly, while price is dropping quite some ! The two yellow lines are quite important on the weekly chart for Zilliqa by the way. Watch it closely, because if it drops below, we can drop quite some more in price before finding a bottom. However OBV is still looking very good for now and it seems to me that long-term this Altcoin is going to grow a lot.

Here is a weekly chart of Siacoin (SIA) :

3c8f2aaa156986869ae57323100b40342340cbe329d5894dda8990683af95c63.png

Siacoin is doing very well in terms of OBV. The drop does not seem to ignite distribution and it seems a lot more likely that accumulation is going on !

I can put some other Altcoins in there as well, but I want to keep it short. Bitcoin is doing well in terms of OBV on the weekly and that is a good sign as well. I showed this already in my previous article.

Here I will put some examples of Altcoins that do seem to have a more decent drop in OBV. This does not mean the cryptocurrency is bad, or will no longer gain in the future, but it shows that ICON, Zilliqa and Siacoin seem to be doing better in terms of accumulation.

Here is a weekly chart of Cardano :

5db4ea7d5abb912ff13f08bc549e05666fcfac0dfbd16889a267b314aa267461.png

You can see a difference between a Cardano and for example ICON. Cardano’s OBV is moving more downwards and is actually agreeing with the price movement. It is exactly where it is supposed to be right now (compare 1st of June and right now).

Here is a weekly chart of Stellar Lumens (XLM) :

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You can clearly see a bigger drop in OBV for Stellar Lumens. This is not necessarily a bad thing, but it shows that price and OBV are more in agreement.

Conclusion

During dumps it is always interesting to see if accumulation is going on or that the cryptocurrency is not faring well. ICON, Zilliqa and Siacoin are examples of cryptos that are showing very promising signs during this dump. Accumulation seems to be going on and I believe we will see very decent gains on these cryptocurrencies in the next 6 to 12 months. Weekly charts take a long time to play out so patience is very important.
Other cryptocurrencies like Cardano (ADA) and Stellar Lumens (XLM) are showing more agreement with the price dumping and its OBV. This is not a bad thing, but it means there is less accumulation going on for these two. This can always change of course, but it is good to check this out every now and then.
Since I found out about ICON and Zilliqa, I bought some of them during this dip. Siacoin I am still hesitating to do, since it has shown less gains during the crazy months we had before this dump.

This is not financial advice and I am not a financial adviser. Do your own research and make your own decisions.


Djordi
Djordi

I am Djordi van Kampen and I live in France. 2017 was the year I learned for the first time about cryptocurrencies and I am intrigued by what it can accomplish in this world, for the better of course !


DJCrypto
DJCrypto

Crypto enthusiast that would like to share his experience in the market in terms of investing and trading. Also travels a lot and likes photography and minerals.

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