Trade Recommendation: ETHLend
The ETHLend/Bitcoin pair (LEND/BTC) started its bull run on December 23, 2017 when it took out resistance of 0.000004. The break above the resistance ignited a parabolic run that saw the pair climb as high as 0.00002829 on January 7, 2018. In two weeks, the pair rose by over 600%.
At this price level, LEND/BTC was in extreme overbought territory. In addition, a bearish divergence can be seen on the daily chart. Those who noticed these signals began to take profits. The heavy selling drove the pair to 0.0000095 on January 16. While bottom pickers bought the dip, they could only muster a rally to 0.0000195 on January 23.
With a lower high in place, the LEND/BTC unravelled. The pair has been generating a series of lower highs and lower lows. However, recent events hint at a reversal. This could be your chance to buy the pair’s firmest support.
Technical analysis reveal that ETHLend/Bitcoin may be carving a bottom at 0.0000048 support. This view comes after the pair has managed to stay above this level for about a week now. Keep in mind, 0.0000048 is the market’s last support level. Therefore, we expect bulls to defend it.
In addition, a bullish divergence can be spotted on the daily RSI. This tells us that the market is slowly gathering momentum. Plus, volume has been below average since June 11. This suggests that participants are slowly losing interest to sell at this level.
The strategy is to buy as close to 0.0000048 support as possible. If bulls can preserve the support, they will attract the momentum they need to move to our target of 0.000008.
The process may take a month.
Daily Chart of ETHLend/Bitcoin on Binance
As of this writing, the ETHELend/Bitcoin pair is trading at 0.00000483 on Binance.
Summary of Strategy
Buy: As close to 0.0000048 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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