I'll start right off with a fundamental analysis of Stratis. In the last months we have seen almost all their products launched in production-ready releases and are now starting to gain some real traction and receive some serious attention from big companies and also from the media. We know that Stratis is the first crypto company certified as Silver partner of Microsoft. Chris Trew, CEO of Stratis has actually stated in his last AMA that the partnership has been "brilliant" so far. Fact that is emphasized by the marketing support from Microsoft that we've got a clue of from Microsoft Azure's official Twitter: https://twitter.com/Azure/status/1103757717674618890
There is a lot to talk about Stratis fundamentals but the main point is that this company and project overall has made amazing progress ( and I really mean it!). Moreover in my personal opinion it is one of the best blockchain offerings you can find on the market. If I wanted to onboard my company with blockchain technology I would have no hesitation to choose Stratis.
What I want to focus on in this article is the technical analysis of STRAT. It is obvious that there is a huge discrepancy between the price and the technology/use-cases/potential that I have talked about above. This discrepancy is creating confusion among the investors and pretty much the whole community. So below I have taken the liberty to make some technical analysis on Stratis:
I don't usually look at a monthly timeframe on an asset that has not been trading for at least 5 years, but actually it telling us something.
As you can see the price hasn't been able to close a candlestick above the 10 SMA and the 21 EMA is clearly showing us a rejection in May 2018. In order to see a clear sign of reversal I am looking for a open and close over both the 10 SMA and 21 EMA. Also we have a strong resistance line at 50k sats. So once I see that level break I would become extremely bullish.
What does the weekly tells us? Well.. we're living below all the moving averages. Once I see a break of the 21 EMA I would look for a retest of the 50 EMA that has rejected the last breakout attempt. We have spent a lot of time in this range and the stochastic is close to oversold levels. This might be an indication of a bottom. Once we break the the 40k-50k sats order block I don't see much holding us below 82k sats.
Now things get more interesting on the lower timeframes.. For volume reasons I'll switch my chart to Binance. Speaking of which you need to take into account that volume and liquidity is not too big for Stratis on exchanges so technical analysis is not so accurate as on Bitcoin or Ethereum for example.
We can observe a trendline dating back from Feb. 2018 on the daily TF. There is an unwritten rule in trading that as long as more touches a trendline has as weaker it gets. We have already have 3 touches so the next test has more probability to give us a full on breakout. ;)
The 25k sats horizontal has great confluence with the 89 cyane EMA as resistance. Once the price breaks that I'll be looking for a test of the 30ks.
I won't go lower than the 4H timeframe as there is just too much noise:
It looks like we have a breakout of the descending triangle pattern, but I would like to see more volume in order to confirm it as a break. RSI and Stochastic oscillators are both in the neutral zone.
We are still in a bear market. Bitcoin is currently in a consolidation pattern and it is not even close to a bullish reversal. Most of my analysis shows that the 'honeybadger' is likely to see more downside in search for the bottom. What this means for Stratis? Well, it is not a good sign. We might get stuck in this range for a lot more time from this perspective, BUT STRAT could break free of Bitcoin's price action once we see the sidechains and masternodes and pretty much all the other utility functions of STRAT get into their role. In other words locking up supply and constant buy pressure (demand) of STRATs from the market will be the trigger IF we don't get into a bull market soon.
Thank you for reading my analysis and if you have any suggestions, feedback or questions I highly encourage you to post them in the comments!
DISCLAIMER: This is NOT intended to be financial advice. The content in my articles strictly represents my personal technical analysis and views of the market.
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