Trade Recommendation: Republic Protocol
We’ve been keeping a close eye on Republic Protocol (REN/BTC) since the second week of December when it showed bullish potential. It came off lows of 0.00000551 on December 7, 2018 and climbed as high as 0.00000838 on December 9. That’s an increase of over 52% in two days.
Quick rises like this usually have an effect on one’s psyche. The fear of missing out can easily draw a trader into buying the top. When you start to have this feeling, always remember that everything is subject to the laws of gravity. So instead of buying the pump, wait for the asset to dump. That’s where you can place buy orders.
REN is giving us this opportunity today.
Technical analysis shows that REN/BTC has broken out of a falling wedge on the 1-hour chart. Interestingly, the breakout was sparked by a strong bounce from support of 0.00000551. This tells us that bulls are trying to establish a bottom at this level.
The bounce, however, was met by the 100 MA, which was acting as a stiff resistance. REN has been pulling back since but this shouldn’t be a cause for concern. What we want to see happen is for REN to enter an accumulation phase near 0.00000551. If the market establishes a new base in this area, it will likely ignite another bull run.
The strategy is to buy as close to 0.00000551 as possible. As long as REN stays above this level, bulls have the momentum to rally to our initial target of 0.00000660. Take that out and the next target is 0.00000694.
The process may take less than a month.
1-Hour Chart of Republic Protocol/Bitcoin on Binance
As of this writing, the Republic Protocol/Bitcoin pair is trading at 0.00000562 on Binance.
Summary of Strategy
Buy: As close to 0.00000551 as possible.
Targets: 0.0000066 and 0.00000694.
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.