Trade Recommendation: Monero
The Monero/Bitcoin pair (XMR/BTC) came off lows of 0.01295112 on August 14, 2018. At that price level, the market was down by over 60% from the 2018 high of 0.034298. Beginning and mid-August 14, it looked like XMR/BTC had more downside risk especially after it breached support of 0.016. However, bulls saw the breach of support as an opportunity to flex their muscles.
Technical analysis show that XMR/BTC has broken out of a falling wedge on the daily chart. This happened after the market rallied on August 31 and recovered support of 0.016. On the day of the breakout, XMR/BTC generated volume that’s over 100 percent of its daily average.
With this price action, the support breach looks like a bear trap. Those who placed short positions when the support of 0.016 broke have been wiped out. If this is the case, then there’s a strong possibility that the market will ignite a strong rally in the coming days.
On top of that, we can see the RSI break out from its own large falling wedge. The surge in momentum suggests that bulls are taking over the market.
The strategy is to buy the retest of the breakout as close to 0.016 as possible.
The target is 0.0235.
The process may a month.
Daily Chart of Monero/Bitcoin on Poloniex
As of this writing, the Monero/Bitcoin pair is trading at 0.01759 on Poloniex.
Summary of Strategy
Buy: Backtest of breakout as close to 0.016 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.
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