Trade Recommendation: Eidoo

The Eidoo/Bitcoin pair (EDO/BTC) showed signs of bullishness when it breached resistance of 0.0003 on December 29, 2017. The price action attracted momentum players who pushed the pair to as high as 0.0004999 on January 7, 2018. In about a week, the market grew by 66.63%. It was enough for those who bought the breakout to take profits.

As sellers flexed their muscles, the market fell to 0.0002812 on January 17. Bottom pickers bought the dip, but the momentum that they gathered was only good for a rally to reach 0.000374 on January 19. Noticing that a lower high was in place, participants started dumping positions. The pair created a series of lower highs and lower lows until recent events.

Technical analysis show that Eidoo/Bitcoin appears to have bottomed out at 0.0001552 on March 18. In addition, it seems to be creating firm support at 0.00019. In the last nine trading days, EDO/BTC has been printing extremely high volume while hovering above 0.00019. This tells us that bulls are establishing a base at this level.

The strategy is to buy as close to 0.00019 as possible. If the support holds, the market will likely use it to surge to our target of 0.00031. The process may take less than a month.

Daily Chart of Eidoo/Bitcoin on Binance

As of this writing, the Eidoo/Bitcoin pair is trading at 0.0002036 on Binance.

Summary of Strategy

Buy: As close to 0.00019 as possible.

Target: 0.00031

Stop:  0.000175

 

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.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.