Trade Recommendation: Qtum
Our April 30, 2019 trade recommendation for Qtum (QTUM/USD) hit its target. On May 16th, the cryptocurrency rallied to as high as $3.5486. Those who stuck to the trade plan grew their investments by over 55% in half a month.
Although QTUM eventually exceeded our target price, there’s no reason to rush because the market is in the early stages of its bull run. It is also correcting after rallying to as high as $5.90898 on June 26th. We can take advantage of this retracement by waiting for a solid entry point.
Technical analysis shows that QTUM/USD has broken out of a large double bottom pattern when it took out resistance of $3.50 on June 21st. The reversal pattern is visible in both the daily and weekly charts. With the technical breakout, the market is now bullish in both the short-term and long-term perspective.
As mentioned, QTUM is correcting after the breakout rally faded. Nevertheless, the cryptocurrency appears to be holding our current range midpoint of $4.50.
Since June 26th, bears have been trying their hardest to claim that key level, but the bulls have flexed their muscles. Every dip to that price area has been bought up. This makes us believe that bulls are building a base around this price in preparation for the next leg up.
The strategy is to buy on dips as close to $4.50 as possible. As long as Qtum trades above this level, it will likely rally to our initial target of $5.50. Take that out and $6.50 is next.
The process may take less than a month.
Daily Chart of Qtum/US Dollar on Kraken
Summary of Strategy
Buy: As close to $4.50 as possible.
Targets: $5.50 and $6.50.
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.