Dero (DERO) (currently trading around $2 with a market capitalization of about $20 million) is an intriguing microcap crypto asset that I’ve had my eye on for the past few years. Dero is different from most other crypto projects since it uses a DAG (directed acyclic graph), rather than a traditional blockchain.
Dero is a private smart contract platform. The DERO/BTC price has been dropping for a while, but very recently there is some good news/rumors coming out in the DERO community regarding the new DERO-HE (Homomorphic Encryption) testnet with smart contracts which is estimated to go live within the next day or so.
Dero claims to have implemented rocket bulletproofs which are allegedly 10 times faster than other bulletproof implementations. If this relatively unknown crypto asset can prove itself in the market, then it has a lot of potential for gains in my opinion.
Keep in mind that the circulating supply is only slightly over 10 million coins. Compare this with many of the top smart contract platforms which have market capitalizations in the billions of dollars, and large supplies of hundreds of millions of coins each.
Another DAG crypto, IOTA (currently ranked #25 on CoinGecko), has a market cap of $3.8 billion, and a circulating supply of 2.779 billion coins. For example, if DERO were to compete with IOTA and match its market cap, it could theoretically rise from its current price around $2 to approximately $369.
I have included a weekly linear chart of DERO/BTC below from the TradeOgre exchange, which has some potentially bullish signals as well.
TradeOgre DERO/BTC weekly linear chart with bullish divergences & Fibonacci retracements
As seen in the above weekly chart, DERO/BTC has finally broken above a steep bearish downtrend line within the past few weeks. It is also showing some bullish divergences as seen by the gray arrows. I would not be surprised to see the price move up towards the 61.8% Fibonacci retracement level in the 0.00006000 area and perhaps rally much higher than that.
If you choose to trade, then feel free to exit your position whenever you wish – remember that this is only a trade idea. A common strategy is to lock in profits near resistance levels, scaling out of your position as the price reaches these profit targets, and ride out any additional gains on top of that while keeping a mental trailing stop loss. Always remember to exercise proper risk management, and don’t invest more than you can afford to lose.
Invest and trade wisely,