Trade Recommendation: Kyber Network

The Kyber Network/Bitcoin pair (KNC/BTC) began to look bearish on February 14, 2018 when it broke below support of 0.0003. This ignited a selling frenzy that drove the pair down to 0.00010859 on March 18. The move down was so quick that the pair lost almost 65% of its value in a month.

At this price level, KNC/BTC was showing signs of strength. First, it was in extreme oversold territory. Second, bulls were able to preserve the support on April 6 when the market pulled back after a brief rally. This was a confirmation that a higher low was in place.

With a bullish setup, bottom pickers entered the buying picture. They sparked a strong rally that saw the pair go as high as 0.00038386 in April 26. While the pair has been correcting since, this could be your opportunity to buy the next higher low.

Technical analysis show that Kyber Network/Bitcoin is creating a symmetrical triangle pattern on the daily chart. It appears to be in the latter stages of an E-wave, which is usually the last leg down before a breakout. It is currently pulling back from a strong three-day rally from May 31 – June 2. This could be your chance to buy the confirmation of the breakout.

The strategy is to buy the higher low as close to 0.000165 as possible. If bulls can hold on to the support, they may ignite a rally that can break the market out of the triangle formation. Initial target is 0.0004.

The process may take a month.

Daily Chart of Kyber Network/Bitcoin on Binance

As of this writing, the Kyber Network/Bitcoin pair is trading at 0.00017549 on Binance.

Summary of Strategy

Buy: As close to 0.000165 as possible.

Target: 0.0004

Stop:  0.00016

 

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.