Trade Recommendation: OAX/Ethereum
The OAX/Ethereum pair (OAX/ETH) ignited its bull run on December 31, 2017 when it broke resistance of 0.0015. The momentum of the breakout was so strong that it went as high as 0.0029 on the same day. That’s an astronomical 93.33% percent growth within 24 hours. Breakout players exploited the rapid rise by taking profits.
As the market succumbed to selling pressure, it plunged to as low as 0.00115 on January 3, 2018. Sensing that a higher low as in place, bottom pickers bought positions and pushed the market to as high as 0.0028297 on January 7. Unfortunately for buyers at this level, 0.0028297 was a lower high. As bulls looked exhausted, bears took the chance to send the market into a freefall.
Technical analysis show that OAX/Ethereum may have bottomed out on February 6, 2018 when it went to a low of 0.0007254. At this point, the market has lost almost 75% of its value from the high of 0.0029. In addition, volume surged on February 12 when the market was hovering around 0.0008 support. From an average of 425,000 units of OAX, it skyrocketed to almost 3 million. This suggests that bulls are prepared to defend 0.0008 support.
The strategy is to buy as close to 0.0008 support as possible. If the market respects this level, it will likely create a base while range trading to our target of 0.0016. The process may take a month.
Daily Chart of OAX/Ethereum on Binance
As of this writing, the OAX/Ethereum pair is trading at 0.00008946 on Binance.
Summary of Strategy
Buy: As close to 0.0008 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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