Trade Recommendation: Loopring

The Loopring/Bitcoin (LRC/BTC) pair started its bull run on January 3, 2018 when it took out resistance of 0.0000336. The breakout attracted momentum traders which helped push the price to as high as 0.000187 on January 9. In less than one week, the pair skyrocketed by almost 460%! Those who bought the breakout were happy to take profits.  

As the market faced intense selling, it dropped to 0.00006512 on January 17. While bottom pickers bought the dip, they could only gather enough momentum to lift the market to 0.00012221 on January 20. The lower high ignited the market’s plunge as it then generated a series of lower highs and lower lows until it bottomed out at 0.00003253 on March 18. Nevertheless, it appears that those who are buying now may be in a good position to capitalize on the market’s bullish momentum   

Technical analysis show that Loopring/Bitcoin is in the process of taking out 0.000057 resistance and trigger a cup and handle reversal pattern on the daily chart. To increase the likelihood of a breakout, bulls need to print around 10 million units of loopring. Those who bought the bottom are likely to sell positions at the resistance. The market needs buyers to absorb the selling pressure.

The strategy is to buy the breakout at 0.000057 as long as the volume requirement is met. Once bulls take out the resistance, they will likely use it to ascend to our target of 0.00008. The process may take less than a month.

Daily Chart of Loopring/Bitcoin on Binance

As of this writing, the Loopring/Bitcoin pair is trading at 0.00005563 on Binance.

Summary of Strategy

Buy: Breakout at 0.000057 as long as the market prints 10 million loopring units.

Target: 0.00008

Stop:  0.0000545 after the breakout.

 

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.