Trade Recommendation: Loom Network
Loom Network (LOOM/BTC) is a market that’s still trapped in range accumulation. Late last year, our trade recommendation to play the range worked well. The article pointed out to consider buying the bottom and selling the top end of the range which was close to 0.00002 and the plan worked.
Unfortunately, Loom Network deeply corrected and breached support of 0.0000107 on May 7, 2019. This drove the cryptocurrency to new lows of 0.00000696 on May 13th. The good news is that the market is showing signs of recovery. We may have a solid opportunity to enter long positions of the cryptocurrency at a good price point.
Technical analysis shows that LOOM/BTC is eyeing to recover our 2018 range bottom of 0.0000107. We believe that the market is still range trading between 0.0000107 and 0.00002. The move below the range low of 0.0000107 can be considered as a deviation. Technical indicators support this bias.
First, we see the daily RSI take out resistance of 46. This triggered the breakout from an inverse head-and-shoulders pattern. In addition, the market registered a significant volume uptick on June 8th. This is an indication that buyers are returning. Bottom-pickers may be sensing that Loom Network is about to recover 2018 lows.
The strategy is to buy on the retest of 0.0000107 as support. As long as the market reclaims this price area, we expect bulls to push the price to our initial target of 0.00001535.
The process may take a month.
Daily Chart of Loom Network/Bitcoin on Binance
Summary of Strategy
Buy: Retest of 0.0000107 as support.
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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