Trade Recommendation: Raiden Network Token
The Raiden Network Token/Bitcoin (RDN/BTC) pair breached resistance of 8,000 satoshis on October 20, 2018. This triggered the breakout from the ascending triangle pattern on the daily chart. Also, the breakout appears valid. On October 20, the market generated volume that’s over 180% of its daily average. The heavy volume breakout was a clear signal to observers that RDN/BTC has reversed its trend.
The reversal caught the attention of traders staying on the sidelines. This helped the market ignite a rally to as high as 10,950 satoshis on October 28. At that point, however, RND/BTC was showing signs of weakness. The long wick above the candle’s body shows that sellers were unloading above 10,000 satoshis. The profit-taking drove the market down to 7,034 satoshis on October 29.
The good news is the market is bouncing. This is your chance to buy the breakout.
Technical analysis shows that RDN/BTC is flipping 8,000 resistance into support. This is a bullish sign as it enables the market to establish a new set of buyers. These buyers will help keep the market trading above 8,000 and prepare RDN/BTC to resume its uptrend.
In addition to the horizontal support at 8,000, RDN/BTC can rely on the diagonal support of its ascending triangle. These support levels should help keep the market from breaking below 8,000.
The strategy is to buy on dips as close to the breakout of 8,000 satoshis as possible. Those who bought the bottom are now taking profits. If bulls can stay above 8,000 satoshis, they will likely generate the momentum needed to rally to our target of 13,000 satoshis.
The process may take a month.
Daily Chart of Raiden Network Token/Bitcoin on Binance
As of this writing, the Raiden Network Token/Bitcoin pair is trading at 8,476 satoshis on Binance.
Summary of Strategy
Buy: As close to 8,000 satoshis as possible.
Target: 13,000 satoshis
Stop: 7,600 satoshis
NOTE: a satoshi is the smallest unit of Bitcoin, which equals to 0.00000001 BTC.
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.