Trade Recommendation: Republic Protocol (REN)
Republic Protocol (REN/BTC) is an interesting bottom picking target. The cryptocurrency plunged after posting a 2019 high of 0.00001396 on July 26th. Recently, it nosedived to lows of 0.00000815 on August 21st. That’s a drop of over 41 percent in less than a month.
The strength of the dump caught our interest. The steep slide is unsustainable. Our bias is further confirmed as the price draws close to two converging supports.
Technical analysis shows that REN/BTC is enroute to support of 0.000008. We have this view for several reasons.
First, 0.000008 is an area where two supports meet: the horizontal support and the diagonal support. Also, the 100-day moving average is gliding close to this price area. The converging supports make it extremely difficult for bears to drive prices lower. This bias is validated by the dwindling volume. With sellers losing interest in dumping positions at current levels, we believe that 0.000008 will likely hold.
Should 0.000008 hold, we can see REN/BTC breaking out from a bullish pennant on the daily chart. The breakout can launch the market to our targets.
The strategy is to buy as close to 0.000008 as possible. As long as REN stays above this level, bulls have the momentum to rally to our initial target of 0.000011. Take that out and the next target is 0.000013.
The process may take less than a month.
Daily Chart of Republic Protocol/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.000008 as possible.
Targets: 0.000011 and 0.000013.
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.
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