Trade Recommendation: aelf/Ethereum
The aelf/Ethereum pair (ELF/ETH) showed signs of bullishness when it breached resistance of 0.002, and went as high as 0.00265 on January 7, 2018. On the same day, however, the pair closed at 0.00206652. The price action created a long wick above the daily candle’s body indicating that bears are not yet ready to give up 0.002 resistance. The next day, the pair closed below 0.002, and that gave bears the momentum they needed to send the market spiraling down.
On January 16, ELF/ETH bottomed out at 0.000956. Bottom pickers stepped in, and pushed the market to as high as 0.00233959 on January 25. As expected, bears repelled the advance. While the market tumbled, this could be an opportunity for you to pick the bottom.
Technical analysis show that aelf/Ethereum appears to be in sideways consolidation, locked between 0.002 and 0.001. Recently, the pair fell down to 0.001 support, and it seems that the market is respecting that level. In addition, volume has been thin which suggests that sellers are losing interest to sell at this price point. Once bottom pickers enter the picture, they can ignite a rally that can send the market to our target.
The strategy is to buy as close to 0.001 support as possible. If bulls defend this territory, they will likely use it to send the market to the top end of the range and our target of 0.002. The process may take a month.
Daily Chart of aelf/Ethereum on Binance
As of this writing, the aelf/Ethereum pair is trading at 0.00112112 on Binance.
Summary of Strategy
Buy: As close to 0.001 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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