Trade Recommendation: Monero
Monero (XMR/BTC) came off lows of 0.0131 on August 18, 2018. At that point, the market showed signs of bear exhaustion. It was oversold on the daily RSI. In addition, bears failed to flip 0.014 support into resistance as bulls fought back to reject lower prices. With these conditions, it appeared that the short-term bottom was in.
The successful defense of 0.014 support inspired bargain hunters and bottom pickers. This ignited a strong rally to 0.019276 on September 4, 2018. Bulls tried multiple times to close above the weekly resistance of 0.0182 but each attempt failed. As bears held their positions, the market retreated. This may have been disastrous for those who bought the resistance but it can be a golden opportunity for those ready to buy the bottom.
Technical analysis shows that XMR/BTC is currently in sideways consolidation. It is range trading between the weekly support of 0.014 and weekly resistance of 0.0182. Right now, Monero is managing to stay above the bottom end of the range. It looks like the support will hold for these reasons.
First, we can see that the daily RSI is in near oversold territory. On top of that, volume spiked in the last two days as the market dropped to this level. This tells us that bulls are showing up to buy the support.
The strategy is to buy the dip as close to 0.014 support as possible. If bulls can stay above the support in the next few days, the market may rally to the midpoint of 0.016. Take that out and the next target is the top end at 0.0182.
The process may take a month.
Daily Chart of Monero/Bitcoin on Binance
As of this writing, the Monero/Bitcoin pair is trading at 0.014304 on Binance.
Summary of Strategy
Buy: As close to 0.014 as possible.
Target: 0.016 first and then 0.0182.
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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