Little Known LBRY Credits Is Making Waves (Price Analysis for LBC: March 5)

The cryptoasset has a developed application which acts as decentralized digital content distribution protocol and marketplace. It supports a variety of media types including songs, videos, and ebooks and rewards users for posting and sharing content. With a functional product, growing interest, and a developing community of active contributors, LBRY Credits may see forthcoming price increases. However, if it is not able to gain a wide enough audience, the digital marketplace may falter and fail.

Key Highlights for March 5

• The price of LBC reached a high of $0.0285 on Feb 23.
• Price broke out of a descending wedge on Mar 5.
• The breakout was preceded by bullish divergence.
• There is resistance at $0.025, $0.0265 and $0.0275.
• There is support at $0.023.
• LBC is currently trading at over $0.024.

For those of you who doubt the amount of interest in $LBC (@LBRYio), think of this: it currently has more active #contributors than $MIOTA. pic.twitter.com/mBaoSa8utp

— Ward On Bitcoin™ (@WardOnBitcoin) March 4, 2019

The Flash Crash

The price of LBC on Bittrex is analyzed on 1-Hour intervals from Feb 22 to Mar 5. It reached a high of $0.0285 on Feb 23. A flash crash followed the next day. A downward trend has followed—though recent increases suggest a possible recovery.

The price found support at $0.025. It made successive lower lows until Mar 5. The support line is created by connecting the successive lows. The number of times the line is touched and its validity have a positive correlation.

The Descending Wedge

The descending resistance line is created by inverting the method used for the support line. Successive highs, rather than successive lows, are traced.

After the Feb 23 crash, price rebounded weakly to $0.265. After a gradual drop, the price made several lower highs. The descending resistance line was validated three times. Wicks outside of the line can be ignored in the short-term in a volatile market. The resistance and support lines combined create a descending wedge. When found in a downtrend, it is considered a bullish reversal pattern.

Divergence And Signal Trigger

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. It is used to measure the strength of a move.

MACD is positive when the short-term average is above the long-term one and negative when the long-term average is above the short-term average. Price reached a low of $0.025 on Feb 25. It reached a lower low of $0.023 on Mar 4. However, during the same time-frame, the MACD made a higher low. This is called a bullish divergence. 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. In the case of LBC, a buy signal would have been triggered on Mar 5, coinciding with the breakout from the descending wedge.

After The Breakout

Final Analysis

Combining MACD bullish/bearish divergence with a support/resistance essentially predicts price fluctuations. It is especially effective when there is a bullish divergence on a bullish pattern and vice versa. A MACD signal can be used to further add validity to the divergence analysis. Given the above information, the price of LBC may break out above the first resistance area and reach $0.0265 and eventually $0.0275. Where do you think the price of LBC will make a top? Let us know what you think in the comments below, and check out our transparent Bitcoin Price Predictions! 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.