Trade Recommendation: Aion
The Aion/Bitcoin pair (AION/BTC) lost all bullishness on January 28, 2018 when it generated a lower high of 0.0005492. Things went from bad to worse when the market broke support of 0.00045 on January 30. This triggered the head and shoulders reversal pattern on the daily chart.
The trend reversal ignited a selling frenzy that saw the pair post consecutive lower highs and lower lows until it bottomed out at 0.000248 on March 12. In about a month and a half, AION/BTC lost almost 55% of its value.
At this level, the pair flashed signs of reversal. A bullish divergence can be seen on the daily RSI. On top of that, volume and price surged on March 15. This was a clear signal that bulls are prepared to defend the 0.00025 support.
As the market came back to life, more bottom fishers entered the buying picture. This sparked a rally to 0.00045 resistance in April 22. As bears managed to preserve the resistance, we have an opportunity to bottom pick the market.
Technical analysis show that Aion/Bitcoin is in sideways consolidation. It is range trading between 0.0025 – 0.00045. It is currently hovering at the 0.00025 support and we’re already seeing reversal signals.
First, a bullish divergence can be seen on the daily RSI. In addition, the 4-day, 9-day, and 21-day moving averages are detached from the daily candle’s body. This tells us that the market will likely bounce soon. Lastly, the volume at 0.00025 is thin, which means that almost no one is selling.
The strategy is to buy the support as close to 0.00025 as possible. If bulls defend this level once again, they will inspire a rally to the midpoint of the range and our target of 0.00035. We will revisit the trade once the target is hit.
The process may take less than a month.
Daily Chart of Aion/Bitcoin on Binance
As of this writing, the Aion/Bitcoin pair is trading at 0.0002532 on Binance.
Summary of Strategy
Buy: As close to 0.00025 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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