Chia Network, set for a price explosion???

OKX:XCHUSDT   Chia Network/Tether
Chia network has seen quite the drop in price by 97% since its launch.

We have a few things going on here:

On the bearish:

1) Price is trading below the ema ribbon, and even then the spread of the ribbon is not offering a whole lot of resistance but it is there.

2) The red ichimoku cloud spans around 80% above our current price action. XCH will have to break above this zone to even begin talks of a potential uptrend.

That's really about it for the bearish side of things.

On the bullish:

1) The rate of the downtrend has slowed significantly

2) Chia's maximum circulating supply is very close to bitcoins . In the 20 million coin range, and chia is only valued at ~$70 as of right now, coupled with an extremely low market cap.

3) We have bullish daily RSI and MACD divergence on not only the USDT pair but the BTC pair as well.

Here are the main reasons why I believe Chia will struggle to start an uptrend unless something changes:

1) Since the coin has launched, the market cap has pretty much stayed the same. If coins are slowly introduced into the ecosystem but there are no more buyers than there are sellers, the price is going to go down. Simple supply and demand .

2) The coin is only listed on 3-4 exchanges I believe. This is likely why the market cap has stayed relatively the same since introduction.

Since Chia runs off of the Nakaomoto consensus like Bitcoin , the introduction of new coins into the ecosystem will slow down over time becoming "deflationary".
If Chia can start to increase its market cap, which will likely happen with more exchange listings, it is very possible to see chia trading back at Ethereum level prices again.

Overall I'm more bullish on this coin than bearish . I would not be surprised if the short/medium term price of this coin drops because of what I have outlined above. I would HODL this coin rather than trade it if that makes sense.

Remember, this is not financial advice and always do your own analysis/research before making any decisions on the market.

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