Trade Recommendation: POA Network
The POA Network/Bitcoin pair (POA/BTC) came off lows of 0.00000818 on September 12, 2018. At that price, the market was down by over 95% from the 2018 peak of 0.000176. This makes POA/BTC one of the worst performing crypto pairs this year.
With no known support at that low price point, the market appeared to be headed for an even deeper plunge. Fortunately, bulls have finally made their stand. POA/BTC is stabilizing and this gives us reason to take a crack at the bottom.
Technical analysis shows that POA/BTC is carving a bottom at 0.00001. This view comes after bulls managed to lift the market above this level on September 16. The rescue efforts look convincing as well. On that day, the pair generated volume that’s over 440% of its daily average.
In addition, the market has been consolidating at 0.00001 for over a month and a half now. Based on the Binance chart, the pair has never consolidated at the same price level for more than a month, until now. This tells us that someone is taking the time to accumulate positions at the cheapest possible price.
The strategy is to buy the bottom as close to 0.00001 as possible. As long as the market is above this level, it will attract more bottom fishers and bargain hunters. Eventually, supply will dry up and that could ignite a rally to our initial target of 0.00002.
The process may take more than a month.
Daily Chart of POA Network/Bitcoin on Binance
As of this writing, the POA Network/Bitcoin pair is trading at 0.00001266 on Binance.
Summary of Strategy
Buy: The bottom as close as 0.00001 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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