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.

Stop: $0.44

 

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.

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