Trade Recommendation: Insolar
Insolar (INS/BTC) is a market that looks ready to test a key resistance area. It all started when Insolar breached support of 0.00004 on September 11, 2018. At that point, the market was poised to generate fresh 2018 lows. However, bears look extremely exhausted and this inspired bulls to mount an uprising. As a result, Insolar rallied to as high as 0.0001032 on October 12.
While Insolar retraced, market participants managed to keep the market’s momentum alive by generating a bullish higher low of 0.0000485. This told us that the fear of missing out is likely in. You can see that in recent price action as the market refuses to generate a lower low.
Technical analysis shows that INS/BTC is creating a cup and handle pattern on the daily chart. With a bullish higher low in place, we expect the market to keep trending higher. On top of that, Insolar has managed to recover the range midpoint of 0.00007. As long as the market stays above that level, the likelihood of touching the top end of the range is high.
In addition, we recently saw a golden cross between the 50 MA and the 200 MA on the daily chart. On top of that, it appears that the 50 MA is on track to cross above the 100 MA. With all three moving averages acting as support, they will serve as a strong escalator to help the price trend higher.
The strategy is to buy on dips as close to 0.000072 as possible. As long as INS/BTC stays above this level, it will likely gather the momentum to rally to our target of 0.0001. Take that out and the next target is 0.0001278.
The process may take a month.
Daily Chart of Insolar/Bitcoin on Binance
As of this writing, the Insolar/Bitcoin pair is trading at 0.0000780 on Binance.
Summary of Strategy
Buy: As close to 0.000072 as possible.
Targets: 0.0001 and 0.0001278.
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.