Trade Recommendation: ETHLend/Ethereum
The ETHLend/Ethereum pair (LEND/ETH) flashed signs of bullish strength when it went above resistance of 0.00015 on December 28, 2017. The breakout attracted momentum players who pushed the price to as high as 0.000418 on January 7, 2018. In less than two weeks, the market rose by almost 180%. With this growth rate, those who bought the breakout were happy to dump positions and lock gains.
As selling dominated the market, LEND/ETH plunged to 0.00010707 on January 16. While the market did bounce, it generated a lower high of 0.00021199. This snuffed out the market’s bullish steam and as a result, it broke below 0.00015 support on January 28. The nosedive might scare other traders, but this could be your opportunity to pick the bottom.
Technical analysis show that ETHLend/Ethereum appears to have bottomed out at 0.00007 on March 7. Also, it seems to be respecting 0.00008 support as the market has been trading at this level for a week now. While volume has been thin, this may be an indication that participants are no longer interested to sell at this price point. The market may rally when supply dries up.
The strategy is to buy as close to 0.00008 support as possible. If bulls defend this level, it will likely create a base before marching to our target of 0.00015. The process may take a month.
Daily Chart of ETHLend/Bitcoin on Binance
As of this writing, the ETHLend/Ethereum pair is trading at 0.00008101 on Binance.
Summary of Strategy
Buy: As close to 0.00008 as possible.
Target: 0.00015
Stop: 0.000075
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.
