Trade Recommendation: Moeda Loyalty Points/Ethereum
The Moeda Loyalty Points/Ethereum pair (MDA/ETH) confirmed its bearishness when it created resistance of 0.006 on November 5, 2017. The resistance level was solidified on November 21 when the market tried to rally above it but closed at 0.0053526. As bears successfully repelled the advance, MDA/ETH dropped and created support of 0.0025
The support level held for some time, but with increased selling pressure, the market eventually broke below 0.0025 on January 15, 2018. Bulls tried to reclaim that level on January 20, but bears were determined to extend their territory. As a result, the pair dropped further, but this could be your chance to buy the bottom.
Technical analysis show that Moeda Loyalty Points/Ethereum appears to be establishing a bottom at 0.00125 support. This support level was initially created on January 11 when the market went as low as 0.0012, but bulls saved the day by pushing the price up to 0.00244. In addition, the price has been jumping every time the pair hit this level. While sellers have had the upper hand for the last three days, RSI surged by 15 points today. This may be an indication that the market is gaining momentum.
The strategy is to buy as close to 0.00125 as possible. If bulls preserve this level, they will likely use it to create a base before climbing to our target of 0.0025. The process may take a month.
Daily Chart of Moeda Loyalty Points/Ethereum on Binance
As of this writing, the Moeda Loyalty Points/Ethereum pair is trading at 0.0013997 on Binance.
Summary of Strategy
Buy: As close to 0.00125 as possible.
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.