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.

Stop: 0.0000054

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.