Trade Recommendation: FoldingCoin

The FoldingCoin/Bitcoin pair (FLDC/BTC) started gathering bullish steam on December 21, 2017 when it took out resistance of 0.0000033. The breakout attracted momentum players who helped push the price to as high as 0.0000065 on January 6, 2018. In less than three weeks, the market rose by almost 97%. That was enough for those who bought the breakout to dump positions and lock their gains.   

As the market succumbed to selling pressure, it dropped to 0.00000303 on January 17. While the market rallied, it generated a lower high of 0.00000414 on January 18. This killed what’s left of the market’s bullish momentum. As a result, FLDC/BTC nosedived, but this correction could be your chance to pick the bottom.

Technical analysis reveal that FoldingCoin/Bitcoin has taken out support of 0.0000025 on February 28. Below 0.0000025, the next major support is 0.0000012. The market has respected this level since March 2017. Also at this price point, breakout players and bottom pickers have most likely sold their positions.   

The strategy is to buy as close to 0.0000012 as possible. If the market continues to respect this support, it will likely consolidate at this level before it can march to our target of 0.0000025. The process may take more than a month.

Daily Chart of FoldingCoin/Bitcoin on Poloniex

As of this writing, the FoldingCoin/Bitcoin pair is trading at 0.00000189 on Poloniex.

Summary of Strategy

Buy: As close to 0.0000012 as possible.

Target: 0.000025

Stop:  0.0000011

 

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.