Trade Recommendation: FunFair
FunFair (FUN/USD) is a market that has recently escaped range accumulation. From November 2018 to April 2019, the cryptocurrency range traded between $0.0035 and $0.0058. Over the last few weeks, the market has given us multiple bullish signals. This is the reason why we’re interested in this cryptocurrency.
Technical analysis shows that FUN/USD has taken out range high of $0.0058 on April 8, 2019. The move above the resistance triggered the breakout from a triple bottom reversal pattern on the daily chart. In addition, the breakout also sparked a rally to as high as $0.0073 on the same day.
At that point, FunFair was showing signs of short-term bullish exhaustion. The daily candle had a long wick on top of its body. Moreover, the market was already trading in overbought conditions. These signals indicated that the cryptocurrency was overheated. Thus, the retrace below $0.0058 on April 10th was not surprising.
For about a month, bears tried their best to drive the market down to range low of $0.0035. The bulls, however, held firm and kept FunFair trading close to $0.0058 until May 15th when they pushed the market above the range resistance again. Since then, the bulls have worked hard to keep the cryptocurrency above $0.0058.
The strategy is to buy on dips as close to $0.0058 as possible. We believe that this support will hold for two reasons. First, bulls have built a strong base around that level. Second, the 50-day moving average (MA), 100-day MA, and 200-day MA are all crawling around that level. They will act as additional supports that will keep the market from trading lower.
As long as bulls are above $0.0058, they will likely generate a rally to our target $0.0088.
The process may take a month.
Daily Chart of FunFair/US Dollar on Bitfinex
Summary of Strategy
Buy: As close to $0.0058 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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