Trade Recommendation: Monero/Ethereum

Our July 9, 2018 trade recommendation for Monero/Ethereum (XMR/ETH) achieved its target on August 27 when the pair climbed as high as 0.3727. Those who followed the trade recommendation grew their investments by over 20% in less than two months in a generally bearish environment for cryptos.

While our trade recommendation did hit the target, what we missed is the bigger picture breakout. XMR/ETH also broke out of a large descending triangle on the daily chart. This breakout fueled the rally to 0.59777 on September 12. Even though we missed this rally, we were confident that we’ll be able to buy the dip. This opportunity is presenting itself today.

Technical analysis shows that XRP/ETH has broken out of the large bullish pennant on the daily chart. The breakout indicates that the consolidation is over and the market is ready to resume its uptrend. The breakout looks convincing as well. Volume suddenly spiked suggesting that bulls are ready to buy more Monero.

In addition, the strong move of this market can be attributed to the slump of Ethereum and the surge of Monero. As long as Ethereum remains weak, we can expect XMR/ETH to continue its ascent.

The strategy is to buy the breakout as close to 0.51 as possible. As long as the market is above this level, it has the momentum to climb to our targets of 0.70 first and then 0.80.

The process may take more than a month.

Daily Chart of Monero/Ethereum on Binance

As of this writing, the Monero/Ethereum pair is trading at 0.52454 on Binance.

Summary of Strategy

Buy: As close to 0.51 as possible.

Target: 0.70 and then 0.80.

Stop: 0.48

 

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.