Trade Recommendation: Qtum
Qtum (QTUM/USD) is market that is still in range accumulation. However, it looks ripe for bottom picking. We have this view because the market attempted to take out our range high of $3.50 on April 7, 2019. Unfortunately, bulls failed to breach that level, which communicated that the smart money is not yet done accumulating. As a result, this coin retreated but this gives us a chance to buy the dip.
Technical analysis shows that QTUM/USD is on its way down to support of $2.10; this is a key level because it has two supports converging at that level.
The first one is the horizontal support. Bulls worked hard in the first two and a half months of 2019 to control the $2.10 price level. When they finally took out that level as resistance in March 14th, Qtum skyrocketed to $3.69467 on April 8th. This price action tells us that bulls are very likely to preserve that area.
In addition, we have a diagonal support at that same $2.10 price area. This diagonal support has kept the market’s tone slightly bullish. It is important for bulls to protect this line. Otherwise, Qtum might correct deeper and revisit 2018 lows.
The strategy is to buy on dips as close to $2.10 as possible. As long as Qtum trades above this level, it will likely rally to our initial target of $3.50.
The process may take less than a month.
Daily Chart of Qtum/US Dollar on Kraken
As of this writing, the Qtum/US Dollar pair is trading at $2.32844 on Kraken.
Summary of Strategy
Buy: As close to $2.10 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.