Augur has experienced a small price drop over the past 24 hours totalling 1%. The cryptocurrency currently is exchanging hands at $30.11 after suffering a small price drop of close to 5% over the past 7 trading days.
Augur was co-founded by Jack Peterson and Joey Krug in the attempt to create the first open source, online, decentralised prediction market. The duo have achieved this recently bringing Augur to the mainnet and launching the platform. The platform is a future prediction market intended for users to be able to predict the outcome of future events.
The token behind Augur is known as REP (reputation). The REP is used to report on the outcome of an event by REP holders that wish to do reporting. After an event has concluded the REP holders will privately submit their results to the network regarding the outcome of an event. In the following month, a consensus of the outcome of ehe event is generated and made publically available. Those reporters that were honest about the outcome receive REP as a reward and those that were dishonest lost REP.
The entire network is run off of smart contracts all on the Ethereum network. It is a peer-to-peer decentralised application and has widely been regarded as the most complicated DAPP on Ethereum.
The ERC-20 token is currently ranked at 40th position in terms of overall market cap across the entire industry, with a total market cap value of $331 million.
Let us continue to analyse price action over the long term for REP.
REP/USD – LONG TERM – DAILY CHART
Analysing the market from the long term perspective above, we can see that REP had experienced a significant bullish run when price action started from a low of $14.17 during November 2017 and rose to an all time high priced at $216 on the 19th of December 2017. This was an extraordinary price increase of over 1400% from low to high.
After placing this high, price action went on to fall, originally finding support at the .618 Fibonacci Retracement during January 2018, priced at $65.22. This Fibonacci Retracement is measured from the bullish run aforementioned.
The market continued to fall during February as price action fell below the 100 day moving average to find support at the .786 Fibonacci Retracement level priced at $43.05. As March began traded the market fell further lower until it found support by the .886 Fibonacci Retracement level priced at $29. Except for a brief period during the start of April, this Fibonacci Retracement provided support numerous times throughout the rest of the trading year and is still currently trading at this price level.
We can also see that for the most recent 2 trading months, June and July, price action has been trapped within a range-bound market, confined between the .786 Fibonacci Retracement priced at $43 and the .886 Fibonacci Retracement priced at $29.85.
It is also important to highlight the extreme bullish price spike experienced on the 11th of May. This price spike was due to the top 10 crypto exchange, Binance, announced that it would add REP to its trading platform, causing price action to momentarily spike by over 230%.
Let us continue to analyse price action over the more recent term to highlight any potential near term support and resistance areas.
REP/USD – SHORT TERM – DAILY CHART
Analysing the market over the more recent period, we can see that price action had experienced another, smaller, bullish run during April. In this bullish run, price action started from a low of $22.67 at the start of April and extended to a high priced at $64.88 experienced on the 17th of May 2018. This was still a remarkable price increase of over 190% from low to high.
After placing this high, the market went on to fall toward the end of May, falling below the 100 day moving average once again until it found support at the short term .618 Fibonacci Retracement (drawn in red) priced at $39. As June began to trade, the market continued further lower until it experienced significant support at the short term .886 Fibonacci Retracement priced at $27.88. It is important to note that this short term .886 Fibonacci Retracement is also bolstered by the longer term .886 Fibonacci Retracement priced slightly higher at $29. This area of support continued to prove its validity during July as the bulls continued to defend this area any time the market approached the level.
If the market can experience a bullish surge from this level, we expect immediate resistance to be located at the 100 day moving average, which is currently hovering around the $36 handle. Further resistance above this level can be located at the short term .618 Fibonacci Retracement priced at $39, followed by the long term .786 Fibonacci Retracement priced at $43.
Alternatively, if the bears step into the market and push price action below $29 we expect immediate support to be located at the short term .886 Fibonacci Retracement priced at $27. Support located beneath this level initially is located at the downside 1.272 Fibonacci Extension priced at $24.47 followed by the downside 1.414 Fibonacci Extension priced at $20.04.
The technical indicators in the market are currently leaning toward favouring the bears within the market. The RSI indicator is currently trading slightly below the 50 handle indicating that bulls are not in control. If we would like the bullish momentum to build in this market we will need to see the RSI to break above the 50 handle.
With the recent launch of Augur on the mainnet two weeks ago it is still relatively young to decide the true potential of the project. However, things are running as intended and the devs have created an amazing platform.
The team is filled with talented members and strong advisors which provides significant confidence to the future of the ERC-20 token.
The team have also recently announced that the “kill switch”, which was coded into Augurs smart contracts in the event of an unforeseen bug, has been sent to a burned address and they no longer have access to this feature, alleviating centralising concerns from some skeptics.