Trade Recommendation: Kyber Network
Kyber Network (KNC/BTC) is a market that looks determined to get out of bear territory. On March 8, 2019, it took out resistance of 0.0000578. This triggered the breakout from a rounding bottom pattern on the daily chart. In addition, breakout traders noticed the price action as they entered the market the next day, March 9. This propelled Kyber Network to as high as 0.00010452.
While the breakout was noteworthy, what’s even more impressive was the volume registered on that day. Kyber Network had trading volume that surged to 157.685 million on March 9. Looking at the Binance chart, the volume on that day was the highest in the market’s history.
This is a very strong indication of demand for the altcoin at current levels, which is why it is worth considering going long on the market.
Technical analysis shows that KNC/BTC is painting a large inverse head and shoulders pattern on the daily chart on top of the rounding bottom pattern. We have this view because the market appears to be creating a bullish higher low setup of 0.0000578. Kyber Network’s ability to stay above this level after retracing from 0.00010452 tells us that bulls are buying the dip.
In addition, 0.0000578 used to be a heavy resistance. Kyber Network struggled to go above it for four months. When it did, the market skyrocketed. Thus, it is not surprising that bulls are flipping this resistance into support in preparation for the next move up.
The strategy is to buy on dips as close to 0.0000578 as possible. As long as Kyber Network remains above this level, it will likely attract the momentum to climb to our target of 0.00009. We’ll revisit this coin once the target is hit.
The process may take less than a month.
Daily Chart of Kyber Network/Bitcoin on Binance
As of this writing, the Kyber Network/Bitcoin pair is trading at 0.00006399 on Binance.
Summary of Strategy
Buy: As close to 0.0000578 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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