Trade Recommendation: GXChain (GXS)

GXChain

GXChain (GXS/BTC) is a market that’s currently in range accumulation. From the 2018 high of 0.00076 posted on January 11th, the pair has nosedived to lows of 0.0000327 on April 24, 2019. That’s an insane drop of over 95% in 15 months. Nevertheless, bulls immediately bought the dip and protected our line in the sand of 0.000127.

In spite of the massive devaluation, the sideways trading of GXChain tells us that a new market cycle is being reborn. This is a good sign because it means there’s hope for the altcoin. At the very least, we can profit from the current range.

Technical analysis shows that GXS/BTC is respecting our range support and line in the sand of 0.000127. We have this view because the market refuses to breach this level after three attempts. These three attempts have enabled the pair to print a massive triple bottom pattern on the daily chart. This could be the pattern that sends GXChain to the moon.

For now, we’ll trade the range and buy close to the support. Fortunately, the daily RSI is printing a bullish divergence. This tells us that bulls are gaining momentum and are likely to be preparing for the bounce.

The strategy is to buy as close to 0.000127 as possible. If GXS/BTC manages to stay above this level, bulls are likely to inspire a rally to our initial target of 0.000206. Take that out and 0.000285 is next.

The process may take less than a month.

Daily Chart of GXChain/Bitcoin on Binance

GXChain chart
As of this writing, the GXS/BTC pair is trading at 0.0001627 on Binance.

Summary of Strategy

Buy: As close to 0.000127 as possible.
Targets: 0.000206 and 0.000285.
Stop: 0.000118

 

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.