Cryptocurrencies mostly traded sideways amid a lack of market-moving news. However, there was some positive news regarding expanding the use of cryptocurrencies, but not enough to reverse the current downturn.
China-based third largest cryptocurrency exchange in the world, Huobi announced to open a brand new office in London and said it is considering to test over-the-counter (OTC) trading from the beginning of the Q3. Meanwhile, Bithumb – the latest exchange who got hacked – said they are reducing the estimated total loss from $31 to $17 million, attributing the reduction to the removal of their crypto holdings from a hot wallet to a cold wallet.
However, based on our research, we found that the following blockchain stocks demonstrated notable price movements based on shifts in their company fundamentals.
Riot Blockchain, Inc.
FTSE International Limited (trading as FTSE Group and FTSE Russell) included Riot Blockchain, Inc. (RIOT) in its Russell Microcap Index on June 25. Earlier on June 21, Riot Blockchain, Inc. regained compliance with Nasdaq listing requirements. It is worth noting that Riot Blockchain, Inc. is involved in building, supporting, and operating Blockchain technologies, primarily through its cryptocurrency mining operations and other internally developed businesses.
Riot Blockchain, Inc.’s stock price reached an unsustainable high, above $45.00 per share, in December 2017. However, the stock crashed by the end of February 2018 and since it, it has been trading mostly sideways between a narrow between $5.95 and $9.70 per share.
Its membership in the Russell Microcap® index will remain in place for one year and will help the company gain confidence among investors and will act as a catalyst for a bullish thesis. So far, its stock price seems to have broken above the downtrend line. If bullish momentum continues to build up over the next weeks and the price breaks above the resistance near $9.70, it could signal a fresh start of another upswing.
New York-based market research firm Analytical Research Cognizance said in the latest report that blockchain markets around the world are expected to grow at a very high CAGR during their forecast period in the next seven years (2018-2025).
The growth prospects of blockchain markets came as a welcome news for DigitalX Limited (DCC), a Perth and New York-based blockchain technology company, that mainly provides ICO advisory services, blockchain consulting services and blockchain-related software development.
DigitalX Limited’s stock price also crashed since the start of 2018 and its daily timeframe Commodity Channel Index (CCI) formed two district downtrend lines over the last two quarters. However, by the middle of June, the CCI broke above the first downtrend line, signaling a potential bullish retracement.
DigitalX Limited’s stock is currently approaching a major support level around $0.055 per share that kept it from falling further down back in October 2017. Hence, if the stock bounces back from $0.055 and breaks above the downtrend line, we could see a potential reversal.
BIG Blockchain Intelligence Group, Inc.
BIG Blockchain Intelligence Group, Inc. (BBKCF) is a leading developer of blockchain technology search and risk-scoring as well as data analytics solutions providers and it just announced that they have signed a client agreement with Canada’s largest and fastest growing exchange, Einstein Exchange.
Under the client agreement, Einstein Exchange will use BIG Blockchain Intelligence Group, Inc.’s full suite of cryptocurrency security tools and services, including its cryptocurrency investigation platform BitRank VerifiedTM transaction risk-scoring service.
Since Einstein Exchange will pay fees for API queries and a monthly seat license, it will likely boost the top line of BIG Blockchain Intelligence Group, Inc. and provide some legroom for its management to invest in R&D down the road.
BIG Blockchain Intelligence Group, Inc.’s stock price recently crossed above the downtrend line and currently, it is resting near the support level around $0.1450 per share. Its 240-minute commodity channel index (CCI) also broke above the zero line, indicating ample bullish momentum.
While the agreement with Einstein Exchange will certainly open up a new revenue channel for the BIG Blockchain Intelligence Group, Inc., it is unclear exactly how much profit the client agreement will contribute to its bottom line. Nonetheless, if we see the stock price moving up and breaking above the resistance near $0.2840 per share, it might be a good idea to increase exposure as it will certainly prompt additional bullish momentum.
It was a quiet week in terms of volatility and major cryptocurrencies mostly traded within narrow ranges, which kept most blockchain stocks trading relatively stable. However, there were notable developments in individual companies involved in offering blockchain based solutions and miners that are worth exploring.