Is Ethereum rival Cartesi (CTSI) a buy ahead of Kraken listing?

YEREVAN (CoinChapter.com) - CTSI announced a milestone in gaining prominence in the crypto community. The currency is on an upscale of 32%, following a similar pattern in ETH price.
Image by Julia Boldt from Pixabay 

Key takeaways

  • Cartesi (CTSI) continues the bullish rally alongside competitor ETH, following listing on Kraken.
  • A bullish breakout awaits in a two-week scenario following the descending channel pattern.
  • The supply fundamentals correspond to market optimism in Cartesi.

YEREVAN (CoinChapter.com) – CTSI announced a milestone in gaining prominence in the crypto community. The currency is on an upscale of 32%, following a similar pattern in ETH price.

CTSI listed on Kraken

On July 30, Cartesi announced its native token CTSI on Kraken, the largest Euro-traded crypto exchange globally. The cryptocurrency is already available for trading across a few mainstream exchanges, including Coinbase and Binance.

Trading on Kraken started today, but its announcement before might have played a key role in boosting its prices upward, primarily since July 20. CTSI has jumped around 32% and has increased by 2% day-on-day. The fluctuation follows the pattern of a two-month tame descending channel.

Technicals are optimistic

At the time of press, CTSI stands at $0.4248. Considering that the trendline has persisted for a relatively long time, it may have created resistance at about $0.44. 

CTSI bullish breakout awaits the descending channel.
CTSI awaits a bullish breakout from the descending channel setup. Source: TradingView.com

As long as the price toggles inside the channel, it is more likely to continue in the descending pattern. Otherwise, we have yet to witness a sharper breakout to solidify a trend reversal. This scenario may play out thanks to the link between the Cartesi price and Ethereum. 

Just as Bitcoin price changes signify fluctuations in investor confidence in crypto markets overall, Ethereum serves as the flagship for two-layer blockchain ecosystems alike. Thus, despite CTSI and ETH being competitors in hosting dapps, their prices have some comovement.

Ethereum has also experienced a price dip around July 20 and has headed to a bullish upheaval ever since, although a more aggressive one. 

Related: 4 reasons why Ethereum prices surged 210% in H1/2021

If this stage of the Catesi rally is too weak to break the resistance, another chance may occur in mid-August if the in-channel fluctuation continues at this pace. Until then, the price may drop as low as $0.30 as the Fibonacci pivot points suggest.

Conversely, if the breakout happens in the few days to come, a new price point of $0.45 may form, a 7% increase. 

What about Cartesi fundamentals?

The fundamentals of Cartesi may also encourage bullish predictions as the price rallies of CTSI usually follow cryptocurrency unlock dates. The latest one on July 23 opened about 40% of the digital currency supply from the Foundation reserve.

CTSI release schedule.
CTSI release schedule. Source: Medium.com

The supply curve of the asset shows an expected steady growth, with the mining reserve completely unlocked by 2023. Until then, the Cartesi Foundation expects no price inflation, only a value-driven increase.

In the meantime, they expect to launch Descrates Rollups during Q3, 2021. These are algorithm improvements that will allow developers to create smart contracts on Cartesi with mainstream software.

This flexibility is supposedly the main competitive advantage of the currency. In addition, Cartesi allows developers to create layer-2 projects on its ecosystem with familiar software development tools and languages.

Related: Harvest Finance flies upward by over 100% as Coinbase Pro lists FARM

If we connect the supply schedule to the price changes, there is some historical correlation. The first breakout happened after February 1, and the all-time high followed the unlock of April 23. So the price increases after the unlocking occurred as it did after the latest one. However, CTSI was already on an uptrend and did not even change its pace after that point. 

The reason may be that the schedule is public, and the price changes preceding the events already absorb the supply-shock information. Still, all these indicators have a heavier bullish component that may confirm very soon.

How useful was this post?

Click on a star to rate it!

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com