March is around the corner and it’s time to start preparing your trading strategy for the month. A great technique is to go into every investment with a game plan. It is always good to distinguish your investments between short and long-term holdings.
In this piece, I highlight 2 cryptocurrencies that potentially have a strong month ahead and could be quality short-term swing trades: Ethereum Classic (ETC) and Kyber Network (KNC).
Ethereum Classic
ETC is due for a run. Their development team has been hard at work on the Callisto project. Callisto is an airdrop that is scheduled for March 5, 2018.
At the time of writing, only Coinomi, has announced support for the airdrop, but this could likely change in the coming days. It would not be surprising if a major exchange such as Bittrex or Binance announced support for the Callisto airdrop as well.
Very often, airdrops cause positive price action in the cryptocurrency market. We saw it last year multiple times with Bitcoin, and we saw it a few months ago with $NXT in the period leading up to the $IGNIS airdrops.
The chart below shows $NXT before the $IGNIS airdrop:
An airdrop is not a 100% guaranteed indicator that a cryptocurrency is going to increase in price; however, it is a trend worth noticing. The trend usually proves to be more consistent when it is a quality coin, and Ethereum Classic fits the bill.
Besides the airdrop, ETC has a wallet release scheduled for March 31, a mobile wallet release in April, ETH compatibility potentially by the summer, and a slew of Coinbase listing rumors. Also, it doesn’t hurt that ETC is sitting at relative lows when compared to BTC/ETC and ETH/ETC ratios. As you can see in the charts below, these low ratios mean that the potential upside is there.
ETC has a combination of factors that could potentially make it a solid swing play for the month of March. It could make sense to hold it even longer. However, keep an eye on the lead-up to the Callisto airdrop, as the potential upside will likely depend on what exchanges announce support for the project.
Kyber Network
This is simply a case of a quality project being severely undervalued.
Kyber Network (KNC) is a decentralized exchange built on a system of reserves. The project, which held its ICO in late 2017, is one of two projects formally advised and backed by Vitalik Buterin (Buterin has announced his support and advisement publicly for Kyber Network and OmiseGo).
Kyber’s decentralized exchange model is unlike anything we have seen before because it provides guaranteed liquidity at all times. You can see the details in the video below:
At its core, Kyber is also deflationary. The reserves must hold and spend KNC to execute these transactions, and a portion of the spent KNC is burned following every trade. As users and reserves increase on the Kyber Network, so will the demand for KNC. However, the supply of KNC will simultaneously decrease. High demand plus low supply equals positive price action.
If you look across the market, you can see how exchange tokens have been bullish over the past few months. Tokens such as BNB, ZRX, KCS, and KMD have all found their way into the top 50 cryptocurrencies on CoinMarketCap. However, Kyber is currently sitting in the 70s, and it seems to have stabilized in that range. Based on the success of the other utility tokens in its field, KNC seems to be extremely undervalued.
The strength of Kyber expands beyond the network itself. Kyber has become a market leader with partnerships with ICON, Wanchain, SelfKey, CoinDuck and more. Their arrangement with CoinDuck is most notable.
CoinDuck is an Ethereum payment service focused on the South Korea community. The partnership with Kyber Network will allow businesses in South Korea to accept Ethereum and ERC-20 tokens from consumers. However, the merchant will only receive the South Korean Won. The Kyber and Coinduck technologies will instantly convert ERC-20 tokens from the consumer to fiat for the merchant. You can read more about this partnership here.
Kyber Network has seen its BTC, USD, and ETH ratios drop dramatically since the release of their testnet last month. Right now, it looks like KNC is sitting in a perfect accumulation zone leading up to their public launch in April.
When Kyber Network is available to the public, it is likely that they will finally get the recognition they deserve. This is the perfect time to make your investment before the general public gets behind the hype and potential of this project.
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