Trade Recommendation: Pundi X
Altcoin season is in the air. If you’re not feeling it, then it’s probably because the season is moving inversely this time.
In 2017, the season started when big-cap names such as Ethereum, Ripple, and Monero made big moves at around the same time last year. Nowadays, these altcoins are frozen as they trade in a narrow range with very little volume. However, small-cap alts such as Ravencoin (RVN/BTC), ChainLink (LINK/BTC) and DOCK (DOCK/BTC) have risen by anywhere between 100% – 300%. We believe that the next candidate for a big push is Pundi X/Bitcoin (NPXS/BTC).
Technical analysis shows that NPXS/BTC is gearing to ignite a massive bull run. Right now, the market is still in accumulation mode as it is trading in a range between 0.00000021 and 0.00000030. However, we are seeing signs that tell us that this phase may be over soon.
Yesterday, October 22, the market got a massive volume influx of 11.198 billion Pundi X units. That figure is over 485% of its daily average. This suggests that the smart money is heavily buying positions at this level. In terms of timing, the volume uptick hints that we are at the latter stages of base building. The smart money bought heavy positions because the train is about to leave the station.
The strategy is to buy the breakout at 0.00000030 after NPXS/BTC generates volume of 4 billion Pundi X units. Those who bought at the bottom end of the range might take profits at the resistance. The market needs buyers to absorb the selling pressure and attract breakout traders.
Once breakout is complete, the market will likely have the momentum to rally to our initial target of 0.00000052 first and then 0.00000070.
The process may take a month.
Daily Chart of Pundi X/Bitcoin on Binance
As of this writing, the Pundi X/Bitcoin pair is trading at 0.00000025 on Binance.
Summary of Strategy
Buy: Breakout at 0.0000003 after volume of 4 billion Pundi X units is met.
Target: 0.00000052 first and then 0.00000070.
Stop: 0.00000028 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.
Featured image courtesy of Shutterstock.