Trade Recommendation: Pundi X
Pundi X (NPXS/BTC) is a coin that’s raring to leave its accumulation range and trend higher. It has been range trading between 0.0000001 and 0.0000002 for almost three months now. During this period, bulls attempted to take out the top end of the range three times. While all three attempts have failed, we believe the next one will succeed.
Technical analysis shows that NPXS/BTC is in a position to take out resistance of 0.0000002. This view comes after the market managed to hold on to our range midpoint of 0.00000015 on February 4, 2019. On top of that, Pundi X printed volume that’s significantly higher than its daily average on January 24, January 27, January 28, and February 5. If you notice, these are the days when Pundi X claimed and retained our range midpoint of 0.00000015.
These volume upticks are bullish. They indicate that the market is in the latter stages of base building. The investors that are accumulating positions are heavily buying while Pundi X is still trading at bargain prices.
The strategy is to buy on dips as close to 0.00000015 as possible. As long as NPXS trades above this level, bulls will likely gather the momentum to finally take out our range high of 0.0000002. Once this resistance is breached, it will trigger the breakout from an inverse head and shoulders pattern on the daily chart. A breakout will likely send the market to our target of 0.0000003.
The process may take less than a month.
Daily Chart of Pundi X/Bitcoin on Binance
As of this writing, the Pundi X/Bitcoin pair is trading at 0.00000019 on Binance.
Summary of Strategy
Buy: As close to 0.00000015 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.
Featured image courtesy of Shutterstock.