Is ARK Just a Community Project or Something Bigger? (Price Analysis For ARK: March 8)

As the ARK community becomes more active with the cryptocurrency, will prices rise or will ARK remain a niche project?

Key Highlights For Mar 8

• There is resistance near $0.61, $0.65 and $0.71
• There is support near $0.53
• The price is trading in an ascending parallel channel
• There is bearish divergence developing in the MACD
• The MACD and SMAs have triggered a sell signal

Ascending Support Line

The price of ARK on Binance is analyzed on 30-minute intervals from Mar 5 to Mar 8. The price started an upward move from $0.539 on Mar 5. Rises and dips followed. Each dip represetned a higher low than the last. Tracing these lows gives us the ascending support line. It also shows that ARK has been moving on a gradual upward trend with slight price increases since Mar 5. The dates in which the line was touched are:

• Mar 5
• Mar 7
• Mar 8

The support line can effectively act as a floor to price, preventing further downward movement. However, if a breakdown occurs, it may initiate a rapid price decrease. Recently, a low was experienced below the support; however, a single wick does not indicate a significant occurrence. In order to accurately predict price decreases, there would have to be maintained movement below the support line for a significant period. As it stands, ARK is continuing to trade along the support suggesting possible price increases. Nonetheless, if trading below the support does begin, this projection may be invalidated.

Ascending Parallel Channel

The price made a high of $0.584 on Mar 5. While dips create higher lows, rises also created higher highs for the same period. Tracing these highs gives us an ascending resistance line. The dates in which the resistance line was touched are:

• Mar 5
• Mar 6
• Mar 7
• Mar 8

The resistance and support lines combine to create an ascending parallel channel, which is a neutral pattern, making price increases and decreases equally likely. The insignificant dip below the support following a recent dip suggests a likely rise back toward the support. This, however, cannot be confirmed until rises actually occur. If drops below support occur, a return to the resistance becomes less likely, and continued price increases may ensue.

Signal Is Triggered

The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price Combined with simple moving averages (SMA), MACD can be used as a trigger for buy and sell signals. Signals are triggered whenever the MACD line is above 0 and the price is above the 21 (red) and 50-period (green) SMAs.

The price made a high of $0.58 8 on Mar 7. It reached the same level on Mar 8. Similarly, the MACD made a high on Mar 7; however, it made a lower high on Mar 8. This is called bearish divergence and often precedes drops in price. Furthermore, on Mar 8 the price dropped below the 21 and 50-period SMAs. During the same time, the MACD line crossed below 0. This would have triggered a sell signal. Coupling this information with the trading value of ARK near the support, price decreases become more likely. A breakdown below the support may be forthcoming. Careful attention should be paid to ARK’s movements over the next few hours and days.

Resistance And Support

Determining whether a breakout below resistance will occur requires a larger data set. The period Feb 18 and Mar 8, 2019 is examined. During this period, the price reached a high $0.863 on Feb 17. It has continued to create lower highs since. Tracing these highs gives us a descending resistance line. The price broke out from the descending resistance line on Mar 4. There are resistance areas near $0.61, $0.65 and $0.71. These two would provide likely reversal areas. There is a support area near $0.53. Based on this analysis, a movement toward the support area seems more likely than one towards the resistance area as a normal fluctuation. A dip was recently experienced within the parallel channel suggesting a subsequent rise in the near future. Trading below support ultimately appears insignificant until more data is available. If price reaches the resistance area near $0.53, this prediction would be validated. However, if prices continue trading below or near support or an elongated period, a sudden crash may be forthcoming. Do you think the price of ARK will return to the resistance line or breakdown below the support? Let us know your thoughts in the comments below! Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.   Price reached a Resistance near $0.61, $0.65 and $0.71 Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.