Trade Recommendation: Ark/Ethereum
The Ark/Ethereum pair (ARK/ETH) started gathering bullish steam on December 16, 2017 when it took out 0.007 resistance. The breakout attracted momentum traders who pushed the price to as high as 0.0127 on December 21. In less than a week, the market rose by over 80%. Those who bought the breakout saw it as an opportunity to take profits.
As the market succumbed to heavy selling, it went as low as 0.0075 on December 22. Bottom pickers bought positions as they noticed that a higher low in place. While the market rallied, it generated a lower high of 0.01148 on December 26. ARK/ETH turned bearish, and it created a series of lower highs and lower lows until recent events.
Technical analysis show that Ark/Ethereum may have bottomed out on February 28, 2018 when it dropped to 0.003933. On the same day, bulls stepped in to preserve 0.0042 support. Three days later, on March 3, the market jumped in both price and volume. This could indicate that the market still respects 0.0042 support.
The strategy is to buy as close to 0.0042 as possible. If bulls continue to defend this level, the market will likely create a base before climbing to our target of 0.007. The process may take a month.
Daily Chart of Ark/Ethereum on Binance
As of this writing, the Ark/Ethereum pair is trading at 0.004695 on Binance.
Summary of Strategy
Buy: As close to 0.0042 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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