Trade Recommendation: MaidSafeCoin/Monero

The MaidSafeCoin/Monero pair (MAID/XMR) started its long and painful downtrend when it generated a lower high of 0.14986999 on February 24, 2016. Things went from bad to worse for the market when it took out firm support of 0.06 in June 2016. MAID/XMR nosedived, and whenever it tried to rally, bears were there to repel the advance, and would send the market reeling to a new lower low.

As bears took control, the pair plunged to 0.004122 on December 31, 2016. It then shifted into sideways consolidation as the pair range traded between 0.005 and 0.012. Unfortunately for participants who bought at the 0.005 support level on August 22, 2017, the pair broke it. Since then, MAID/XMR has resumed its vicious downtrend until recent events.

Technical analysis show that MaidSafeCoin/Monero appears to have carved a bottom of 0.00100607 on March 7, 2018. The market bounced after touching this level. This can be seen in the meteoric rise in RSI that went from extreme oversold to nearly overbought in two weeks. Now, the key for the market is to take out 0.0016 resistance to start gathering momentum.      

The strategy is to buy the breakout at 0.0016 with at least 20,000 units of MaidSafeCoin in volume. Those who bought the bounce are likely to sell positions at this level. If the breakout is a success, the initial target is 0.0022. The market will likely consolidate at that price point before it can take out more resistance levels.  The process may take less than a month.

Daily Chart of MaidSafeCoin/Monero on Poloniex

As of this writing, the MaidSafeCoin/Monero pair is trading at 0.00141502 on Poloniex.

Summary of Strategy

Buy: Breakout of 0.0016 with 20,000 units of MaidSafeCoin in volume.

Target: 0.0022

Stop:  0.0015 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.