Trade Recommendation: Metaverse ETP
Metaverse ETP (ETP/USD) is a market that’s also trying to establish a bottom. It all started on June 24, 2018. At that point, ETP rejected prices lower than $0.46. This was the initial indication that the market was trying to establish a new support. ETP’s ability to stay above $0.46 for about a week while trading in oversold territory inspired more bottom-pickers and bargain hunters to enter the market. This ignited a bull run that sent ETP to as high as $3.866 on September 23, 2018.
Although the market has been correcting since, technical indicators are telling us that ETP will likely bounce hard soon.
Technical analysis shows that ETP/USD is respecting support of $0.46. This view comes after Metaverse ETP broke the support on January 28, 2019 only to reject lower prices. As a result, ETP printed a large wick below the daily candle’s body. This indicates the presence of buyers.
The long wick helped to attract bottom-pickers and bargain hunters. The renewed buying lifted the market back above $0.46 on January 31. It appears that the breach below the support was nothing but a bear trap. Also, Metaverse ETP is creating a large bullish divergence on the daily chart. This is a strong indication that the market is turning bullish.
The strategy is to buy as close to $0.46 as possible. As long as ETP/USD stays above this level, it will likely rally to our range midpoint of $0.728. Take that out and the next target is $1.00.
The process may take less than a month.
Daily Chart of Metaverse ETP/US Dollar on Bitfinex
As of this writing, the Metaverse ETP/US Dollar pair is trading at $0.515 on Bitfinex.
Summary of Strategy
Buy: As close to $0.46 as possible.
Targets: $0.782 and $1.00.
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.