Trade Recommendation: NANO
NANO (NANO/BTC) is a market that has finally joined the bullish party after spending five months in range accumulation. The pair may look ready to explode. However, those who are placing long position trades in the market due to the fear of missing out must beware. NANO is showing signs of bullish exhaustion in the shorter timeframes. It is best to wait for a pullback before jumping in.
Technical analysis shows that NANO/BTC has taken out resistance of 0.00028 on April 8, 2019. This triggered the breakout from an inverse head and shoulders on the daily chart. The breakout ignited a rally to as high as 0.000351 today, April 9.
While the breakout is bullish, NANO is starting to lose steam. First, it retreated after touching resistance of 0.00035. As a result, today’s candle has a wick above the candle to indicate the emergence of sellers.
Also, a look at the hourly chart shows that NANO is climbing on declining volume. This is a short-term bearish sign as the decreasing volume means that buyers are losing interest at current levels. You want to follow their lead and wait for the throwback.
Lastly, the daily RSI is overheated. Plus, it is forming a possible double top. This is another sign that a retracement is around the corner.
The strategy is to buy on dips as close to 0.00028 as possible. As long as NANO/BTC is above this level, bulls will target resistance levels of 0.00035 and 0.000428.
The process may take more than a month.
Daily Chart of NANO/Bitcoin on Binance
As of this writing, the NANO/Bitcoin pair is trading at 0.0003385 on Binance.
Summary of Strategy
Buy: On dips as close to 0.00028 as possible.
Targets: 0.00035 and 0.000428.
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.