Crypto currency background with various of shiny silver and golden physical cryptocurrencies symbol coins, Bitcoin, Ethereum, Litecoin, zcash, ripple.
In what was a tough week in the cryptocurrency universe, altcoin Pirate Chain (ARRR) stole the show, gaining 465%.
Whilst the larger, more well-known cryptocurrencies were making the headlines, below the surface, this relatively unknown privacy token was making waves of its own.
Over the course of the last five trading sessions, the price rose from $2.30 vs the US Dollar to a new all-time high of $16.56. This momentous rally saw Pirate Chain’s market cap increase from $434 Million to close to $3 Billion, with a rank of #49 on the CoinMarketCap index at the peak.
The price is currently trading at $13.18, with a market cap of $2.34 Billion, having retreated some 22.75% from the ATH.
Because Pirate Chain transactions take place on a force-shielded blockchain (known as z-transactions), it guarantees 100% anonymity on all interactions between users.
Like Bitcoin, ARRR is characterised by a finite supply. The total number of coins can never exceed 200,000,000, with 1,800,000 in current circulation.
The obvious question investors are asking is, where do prices go from here? After witnessing such an extreme acceleration in price over a short period of time, it’s hard to say what the immediate future holds. Technically ARRR is still deep in overbought territory. The 14-day Relative Strength Index Indicator climbed as high as 96.59 before pulling back to its current level of 74.0. Technical analysts view a reading of >70 to indicate a market may have risen too fast and is due a correction.
Cryptocurrency analysts remain divided on their price predictions for Pirate Chain. Year end 2021 targets range from $4.00 to 18.50.
My view is to remain cautious, as chasing the price into parabolic moves carries inherent risk. Whilst of course there is a chance that in the short-term the price could continue its ascent. The danger of a sharp correction remains.
