Trade Recommendation: ETHLend
ETHLend (LEND/BTC) is a market that looks poised to touch the range high. Let me explain. This pair started to build its base on August 14, 2018, when it dropped to as low as 0.0000018. ETHLend worked hard to carve a bottom at that level. However, bears managed to breach the support on September 11. This drove ETHLend to its 2018 low of 0.00000141 on September 12.
Fortunately, bulls came to the rescue and lifted the market back up to 0.0000018 support on September 16. The move below the support became a bear trap. This ignited a strong rally to 0.00000431 where it was rejected by the 200-day moving average on October 28. Participants who saw this signal dumped their positions. As a result, ETHLend revisited the range low of 0.0000018.
The good news is the dump allows us to bottom pick the market.
Technical analysis shows that LEND/BTC has created a double bottom pattern on the daily chart. This structure tells us that the market has established a durable bottom at 0.0000018.
In addition, the market printed huge volume on January 14, 2019. The heavy volume pushed the market up to 0.0000027 where it was once again rejected by the 200-day MA. Nevertheless, the volume uptick is a signal that market is almost done accumulating. If that’s the case, we can expect ETHLend to pump in the coming days.
The strategy is to buy on dips as close to 0.0000018 as possible. As long as bulls hold this support, they will likely ignite a rally to the range midpoint of 0.0000026 and then the range high of 0.00000342 that was mentioned in the beginning of the article.
The process may take less than a month.
Daily Chart of ETHLend/Bitcoin on Binance
As of this writing, the ETHLend/Bitcoin pair is trading at 0.00000232 on Binance.
Summary of Strategy
Buy: On dips as close to 0.0000018 as possible.
Targets: 0.0000026 and 0.00000342.
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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