Today we are giving a short introduction of five cannabis coins with the major technical price patterns that are driving their market direction.
Pot Coin (POT)
PotCoin is ranked number one on our list of cannabis coins, with a maximum supply of 420 million POT and approximately 222 million POT in circulation at press time. PotCoin is a Proof of Stake (POS) cryptocurrency that was the first of many in 2014.
The chart below shows major technical price patterns on the POTUSD chart from different time horizons.
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The above weekly chart illustrates an increase in speculative demand for PotCoin, starting with a breakout of hidden bearish accumulation pattern on 17 December ’18, followed by a breakout of bearish accumulation on 04 Feb ’19, and a bullish Fakey pattern on 04 March ’19.
Last week 08 April ’19 the pair triggered a dark cloud cover price pattern indicating bearish sentiment for this cannabis coin. A bearish closing week within the high low range of the previous week signals bearish accumulation and possible price decline.
Like the weekly chart, the daily chart shows the weakness of sellers through a breakout of bearish accumulation on 05 and 25 March ’19. Recently formed breakout of bearish accumulation on 02, 03 and 14 April ’19 shows an increase in bullish sentiment.
A breakdown of the 0.01989015, and 0.01980960 will confirm a bearish outlook.
Formation of bearish regular divergence from a 4-hour chart justifies last week’s bearish closing candle. The recent support triggered by a breakout of bearish accumulation on 13 April ’19 04:00 still holds, however, a price close below this support level will show the weakness of bulls and possible takeover by the bears.
HempCoin (THC)
At a maximum supply of 300 million THC, HempCoin is not only a cannabis-focused altcoin, it focuses on the entire agriculture sector including tobacco. Started in 2014, HempCoin is the first cannabis coin for farmers. The coin came into existence to aid in the purchase bulk farm supplies.
Following a price collapse initiated by bearish accumulation on October ’18, the THCUSD transitions into a bottoming as the bulls break above critical resistance levels on 17 December ’18 and 18 March ’19. These price breakout points initiated strong support levels at 0.00780069, and 0.00829620 respectively.
The bullish trend of HempCoin is looking intact as another bullish accumulation support is established on April ’19 at 0.01549338. This support level is referenced for the health of the THC.
After a breakout of bearish accumulation on 05 March ’19, which was later followed by double bullish accumulation on 15 March ’19, the THCUSD, from a daily chart perspective, entered into a steep but a steady bullish trajectory. The THCUSD appears to be overbought with bullish outlook as it triggers another break of bearish accumulation on 05 April ’19.
Tokes (TKS)
Tokes Coin, a KYC and AML complaint cryptocurrency, runs on the Waves blockchain with a focus of moving the entire weed supply chain and customer transaction away from cash.
The cannabis coin Tokes, with ticker symbol as TKS, triggered a double bearish accumulation pattern on 29 October and 05 November ’18. A sudden increase in price volatility in February settles into bullish accumulation support at 0.3008960 on 25 Feb ’19. A recent bearish inside bar triggered on 08 April ’19 shows a slowing of the bullish trend.
DopeCoin (DOPE)
DopeCoin is a rather more anonymous way of buying weed while at the same time avoids transaction fees.
Similar to the Tokes coin, DopeCoin fires a double bearish accumulation on 29 October with strong resistance at 0.00960141, and finally bottoming after an approximate 75.26% price plummet.
A breakout of bearish accumulation on 17 December ’18 signaled a takeover by the bulls. An opposite breakdown of bullish accumulation on 07 January ’19 brings the pair into a rising-triangle formation where it signals another breakout of bearish accumulation on 04 March ’19.
Cannabis Coin (CANN)
At a total supply of 91,859,176 CANN, Cannabis Coin is centered on making cannabis and cryptocurrencies more easily acceptable in our society. The coin is designed to ease the purchase of medical marijuana.
The price of CannabisCoin crashed by 62.65% from the bearish accumulation pattern on 05 November ’18. A bottoming of the bearish trend dubbed “crypto winter” was confirmed early on 25 January ’19 by a breakout of bearish accumulation. Following the breakout, the pair triggered a bullish accumulation pattern in support of the rising campaign for a 138.90% price rally.
A bearish accumulation pattern is anticipated following a bearish inside bar formation last week.
Conclusion
Cannabis coins like the top ten cryptocurrencies by market capitalization, closed the previous week with a bearish undertone, and did not respond to bullish outlook like the other altcoins. Although we look forward to a continuation of the bullish trend, critical support levels of the top 5 cannabis coins are threatened and we might see a drop in price in some of the weed coins.
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