Trade Recommendation: Decentraland
Our November 10, 2018 trade recommendation for Decentraland (MANA/BTC) hit our target price. After dropping close to our bottom-picking target of 0.0000123 on November 20, the market swiftly rejected lower prices. MANA then rallied to as high as 0.00001549 on November 30. Those who followed the trade recommendation grew their investments by around 25% in less than three weeks.
Since then, we’ve been keeping tabs on Decentraland to look for a possible reentry point. While it took more than two months of waiting, it seems that our patience is about to be rewarded. The market looks ripe for bottom picking.
Technical analysis shows that MANA/BTC is enroute to support of 0.00000895. This view comes after the market respected its diagonal resistance for the third time today, February 6. Its failure to go above 0.0000105 indicates that the rally was a short-lived dead-cat bounce.
Now, 0.00000895 support will likely hold because bulls have been defending it since January 2018. From that point, drops to this level were met by swift rejection of lower prices. We expect bulls to behave the same way once Decentraland revisits this level. Also, the market is likely to be in extreme oversold territory once it touches 0.00000895. This will make it easier for bulls to preserve the support.
The strategy is to buy as close to 0.00000895 as possible. If MANA/BTC trades above this level, it will likely launch a rally to our target of 0.00001488.
The process may take a month.
Daily Chart of Decentraland/Bitcoin on Binance
As of this writing, the Decentraland/Bitcoin pair is trading at 0.00000955 on Binance.
Summary of Strategy
Buy: As close to 0.00000895 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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