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MaidSafeCoin has experienced a brief month of rising prices as the markets see an appreciation of price action in the region of 6.54% over the last 30 trading days. However, this short lived bullish run has recently met resistance and has rolled over, dropping almost 5% over the last 24 hours of trading. At the time of writing, MaidSafe Coin is currently trading hands at a price of $0.32.

MaidSafe was founded in 2006 by David Irvine, in Scotland, United Kingdom. Irvine intended to create a decentralized data management service which uses the spare resources from network participants. The MaidSafe team has been consistently developing their SAFE network for a number of years, which stands for safe access for everyone.

The Safe network brings together clients and farmers, allowing farmers to supply spare computing resource and clients to use the features of the safe network such as browsing and storing data. The farmers are remunerated for donating their resources to the Safe network. Farmers donate their processing power, GPU power and internet connection to the Safe network allowing for the creation of a decentralized and secure internet.

The Safe network is different from most cryptocurrencies in the sense that it does not use a blockchain. Instead it has its own decentralized communications and consensus network of nodes that allows the network to process thousands of transactions simultaneously. The MaidSafe team have stated that this makes the  Safe network the highest performance cryptocurrency network available.

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Due to the fact that it does not use a blockchain, MaidSafe is a difficult concept to understand. We strongly recommend a read through of our “What is MaidSafe Coin” guide for a more in-depth look at the project.

MaidSafe Coin is currently ranked at 63rd place in terms of overall market cap across the entire industry, with a total market cap value of $148 million. This is $79 million lower than the market cap high seen over a month ago at $227 million on June 6.

Let us continue to analyze MaidSafe market price action over the course of the trading year.

Price Analysis

MAID/USD – LONG TERM – DAILY CHART

https://www.tradingview.com/x/pPlv1Lxs/

Analyzing price action from a long term perspective above, we can see that the market had experienced 2 bullish runs during 2017. The first bullish run started from a low of $0.21 on July 11, 2017 and rose all the way up to a high of $0.78 on September 2, 2017. The price increase of the first bullish run from low to high was around 264%.

The second bullish run during 2017 started from a low of $0.26 on November 2, 2017 and extended all the way up to an all time market high of $1.36 on January 2, 2018. This was a price increase of 415% from low to high. The total price increase of both of the bullish runs from July 11, 2017 to January 2, 2018 was over 500%.

After placing the market’s all-time high, price action went on depreciate substantially during 2018, originally finding support at the .618 Fibonacci Retracement priced at $0.65 in January. This is a Fibonacci Retracement taken from entirety of both the bullish runs described above.

The market went on to break below the .618 Fibonacci Retracement during February where it found support at the .886 Fibonacci Retracement priced at $0.34. Notice how the market, dipped slightly below the .886 Fibonacci Retracement but found support at the 1.272 Fibonacci Extension at $0.31. This Fibonacci Extension is taken from the initial bearish leg seen during January 2018.

Price action dipped further during March, dropping below the starting level of the second bullish run seen during November 2017, marked by the purple line. The market fell further lower in April, until it found strong support at the initial base of the first bullish run during July 2017, marked by the blue line, where it found strong support and reversed.

Let us continue to analyze price action over the more recent term a little closer to highlight some areas of potential support and resistance.

MAID/USD – SHORT TERM – DAILY CHART

https://www.tradingview.com/x/NbKstCtc/

Analyzing the market from a closer time frame, we can see that the market had experienced its first bullish run during 2018 when price action rose from a low of $0.21 on March 30, 2018 to a high of $0.52 experienced on June 4, 2018. This was a price increase of over 145% from low to high.

After placing its high, the market fell through June, until it found significant support at the short term .786 Fibonacci Retracement level priced at $0.27 (marked in black). This is a Fibonacci Retracement taken from the bullish run outline above.

Price action rebounded at this area and began to trade in a bullish manner as July started to trade, until the market met resistance at the .5 Fibonacci Retracement level priced at $0.36. It is important to note that the 100-day moving average is also located within this area, adding to the expected resistance.

Price action is currently trading at support around the .618 Fibonacci Retracement priced at $0.33. If the recently witnessed bearish pressure pushes price action below the .618 Fibonacci Retracement, then immediate support is expected at the 1.272 Fibonacci Extension (marked in green) priced at $0.31. Support following this level is located at the .786 Fibonacci Retracement priced at $0.27. In the worst case scenario, major support should be expected toward April 2018’s low marked by the blue line priced at $0.21.

Alternatively, if the bulls can pick up momentum within the market, then the nearest level of expected resistance is located at the .50 Fibonacci Retracement priced at $0.36. Resistance following this area is located at the .382 Fibonacci Retracement priced at $0.40. If the bullish momentum can push the market even further, then significant resistance is expected at the long-term .786 Fibonacci Retracement (marked in red) priced at $0.46.

The technical indicators are not providing favor towards the bulls nor the bears. The RSI is currently trading on the 50 line. If we are to expect the recent bearish momentum to fade, we would need the RSI to break above the 50 handle and continue toward overbought conditions at the 80 handle.

Conclusion

MaidSafe is a 50-month old project within the cryptocurrency community, making it older than the majority of coins within the top 100 market cap rankings. This allows us to provide a strong base of trust and experience within the MaidSafe team due to their longevity within the industry.

The team has recently allowed their PARSEC code to go live on their GitHub. The Parsec code will allow the autonomous consensus mechanism behind the Safe network to go live. We will be closely monitoring responses from the community and the market regarding this new code.

With the cryptocurrency industry returning to pre-2018 bull run price levels, this provides ample opportunity for new investors to enter the space that believe in the technology.  

Related: Augur Price Analysis: REP Meets Resistance as Mainnet Launch Looms

Source


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