I have been studying ETN graph since last week and I noticed that it keeps declining almost everyday. Even its market cap is now below $500M. What could be the factor?
It is a interesting question. Ralph Nelson Elliott developed the Elliott Wave Theory in the 1930s. Elliott believed that stock markets, generally thought to behave in a somewhat random and chaotic manner, in fact, traded in repetitive patterns.
Elliott proposed that financial price trends result from investors’ predominant psychology. He found that swings in mass psychology always showed up in the same recurring fractal patterns, or “waves,” in financial markets.
Elliott’s theory somewhat resembles the Dow theory in that both recognize that stock prices move in waves. Because Elliott additionally recognized the fractal nature of markets, however, he was able to break down and analyze them in much greater detail. Fractals are mathematical structures, which on an ever-smaller scale infinitely repeat themselves. Elliott discovered stock index price patterns were structured in the same way. He then began to look at how these repeating patterns could be used as predictive indicators of future market moves.
There is a lot to learn about it and this is a good link to start learning at https://www.investopedia.com/articles/technical/111401.asp
This chart i made some place in feb mars, around that time period. I used a tool called fibonacchi and elliot wave teori. often i also try to match it with pitch fork. i will come back to those to teoris in a bit.
When demands go up for ETN we will se a increase in price and we get a periode with green lines called candle
Candlestick charts originated in Japan over 100 years before the West developed the bar and point-and-figure charts. In the 1700s, a Japanese man named Homma discovered that, while there was a link between price and the supply and demand of rice, the markets were strongly influenced by the emotions of traders
Just like a bar chart, a daily candlestick shows the market’s open, high, low, and close price for the day. The candlestick has a wide part, which is called the “real body.”
This real body represents the price range between the open and close of that day’s trading. When the real body is filled in or black, it means the close was lower than the open. If the real body is empty, it means the close was higher than the open.
Enough rise and back to ETN So you can see we are in a period of down at the same time we set a record in mobile top ups. We also know when people top up the phone with ETN, ETN moves from a storage and in to the market again, when people start to buy more ETN to store for later top up price goes up. I use top up as a example. So the more ETN get used and put in circulation the higher the price will go, and that is before we have one set of coins.
So for me to point out one or a few reasons for the decline in price is hard. But i do know that eas of us in also include how to get ETN and at this point it is hard for people to get ETN in the wallet since it is a struggle to buy and use ETN
I love this analysis, it made me understand more on the demand and spending of ETN