Trade Recommendation: PowerLedger
The PowerLedger/Bitcoin pair (POWR/BTC) came off lows of 0.0000197 on September 12, 2018. At that price, the market was down by over 85% from the 2018 peak of 0.00013299 on January 4.
The good news is that bottom fishers and bargain hunters have entered the market once again. They are buying at current levels because POWR/BTC looks really cheap. Their activities are helping the market bottom out.
Technical analysis shows that POWR/BTC is positioning to take out resistance of 0.00003. This view comes after we spotted a small cup and handle structure on the daily chart. This pattern can be bullish because it enables the market to generate a higher low setup.
On top of that, we can see the market create a hammer with a long wick in today’s candle. This indicates that the market is rejecting lower prices. Interestingly, the body of the hammer is managing to stay above the uptrend support. These signals tell us that participants are starting to feel bullish. Perhaps, they’re seeing what we’re seeing as well.
The strategy is to buy the breakout at 0.00003 after POWR/BTC generates volume of 10 million PowerLedger units. 0.00003 is a very strong resistance. It used to be the market’s strongest support level so POWR/BTC must be pushed with really heavy volume to break out. When the market breaks out, however, it will send a strong signal that POWR/BTC is back.
Once breakout is complete, our initial target is 0.00004. Take that out and our next target is 0.00006.
The process may take more than a month.
Daily Chart of PowerLedger/Bitcoin on Binance
As of this writing, the PowerLedger/Bitcoin pair is trading at 0.00002579 on Binance.
Summary of Strategy
Buy: Breakout at 0.00003 after volume of 10 million PowerLedger units is met.
Target: 0.00004 and then 0.00006.
Stop: 0.000028 after the breakout.
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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