After analyzing Ultra (UOS) following your last vote, we now meet for an analysis of a corner with its blockchain, a corner designed for privacy, I ask you to warmly welcome : DERO. Let’s go !
Warning : This article does not constitute investment advice or an investment inducement. It is intended only as an article strictly informative. You are the only one responsible for the trading and investment decisions you make.z.
Introduction to the DERO blockchain
Dero is a privacy blockchain (Layer1) whose consensus is the Proof of Work (POW). It works with a homomorphic encryption system which allows all users to see the global transactions of the blockchain. Nevertheless, only the issuer can provide what is called a Txproof which gives access to what happened in the transaction.
But what is the point of this? This increases the level of information available in the blockchain as it becomes encrypted while keeping the possibility to make it 100% auditable.
Moreover, this blockchain works very quickly and, like Ethereum, it allows the use of Smart Contracts. A small summary of the potential of DEROis in the image below:
Please note that this image was brought by a person who is in the ecosystem of DERO.
Let’s move on to tokenomics, as of March 29, 2023, according to CoinMarketCap :
- Number of Tokens in circulation : 13 400 000
- Maximum number of tokens expected: 21 000 000
- % in circulation: 64 %
A corner where a major part of the assets have been released is always a good signal for a non-dilution of it. As a reminder, a dilution of a token without a buyer would lead to a decrease of its price, that’s why it’s always important to look at this distribution.
Where are we ?
Like all altcoins, DERO has undergone during this bearmarket. What is VERY interesting is that it bounced right off the 0.886 Fibonacci, which is a typical altcoin move. Moreover, we can see that it had a superb accumulation phase between July 2022 and March 2023 which was between the two green terminals that both became supports.
For the past few days, however, it has performed well and is at its next resistance level of $7-8.
What can DERO fans expect?
The good news for those who have seen such a rise is that thewe remain in a long term recharge zone (below the 0.618 of Fibonacci). Therefore, it is possible to continue to make DCA... Even if it is not optimized, because we necessarily find that the ideal entry of an investor who believes in this asset is at $5 and if possible even at $2.50.
Nevertheless, the corner DERO Is only in the top 300 cryptocurrencies with a global MarketCap of less than $100 Million. A entry into the top 50 for an asset like this would suggest a price equivalent to $70or even more if a new bullrun were to occur.
In terms of of short and long term objectives, we can anticipate three. The first major one is the resistance that turned the market and form the M. This one is between the 13 and 14 dollars and should arrive on a shorter term basis if the current bullish rally continues.
The other two are for a longer term view. Applying Fibonacci extensions, we find the $70 with exactly $74 for the 2.618 of projection which will be for me one of the maximum objectives to aim for. Another more psychological objective this time would be at the $50 and would correspond just to passing the 1.618 projection.
You’ll understand, you need to set clear sales goals when you buy and every week I try to give you tools to achieve them.
Here, some realistic goals are $14, then $50 and finally $70but will require a significant recovery in the global market including crypto-currencies.
My investment side tells me thatI won’t invest until the price comes back to test the $5 support tbut keeping in mind thatit could touch the $2.5 mark again. However, the Fibonacci principle of applying a DCA below 0.618 remains applicable and some might decide to continue accumulating, even if we don’t buy resistance…
Hear, hear! I hope you enjoyed this article, feel free to leave a comment here, or on the various networks, to ask which asset you want me to comb through next week!
Entrepreneur & Dad, passionate about cryptocurrencies, I describe for you the technical analysis. Cofounder of Cryptocademia, a free platform to learn all you want/can about blockchain ! Meet you there at https://www.cryptocademia.com
My job: look at charts and interpret them for you.
Beware, I do not know all the truths.