Trade Recommendation: Request Network
Request Network (REQ/BTC) came off lows of 0.00000445 on September 12, 2018. At that price level, the market was down by over 93% from the 2018 high of 0.00007220. More importantly, dropping to that price level meant that Request Network has given up all of its gains from the December 2017 – January 2018 bull run. While this may sound horrible and repelling to retail investors, it is actually one of the best times to enter the market.
At 0.00000445, all weak hands have likely been shaken out. Without weak hands, the smart money can start scaling in. There are multiple signals emerging in Request Network telling us this is happening now.
Technical analysis shows that REQ/BTC is currently in sideways accumulation. It is building a base as it range-trades between 0.00001067 and 0.00000445. The recent break of the midpoint of 0.00000742 suggests that the market is well on its way back down to the 2018 low of 0.00000445.
The breach of the midpoint is not that bad. That’s because the current market range is where the smart money steps in. The volume surges from the second half of October show that buyers are buying in bulk. The midpoint break is just another ploy to purchase the market at lower levels.
The strategy is to buy the dip as close to 0.00000445 support as possible. If bulls keep defending the support, we can expect the market to rally to our initial target of 0.00000596. Take that out and we can expect the range midpoint of 0.00000742 to come next.
The process may take more than a month.
Daily Chart of Request Network/Bitcoin on Binance
As of this writing, the Request Network/Bitcoin pair is trading at 0.00000560 on Binance.
Summary of Strategy
Buy: As close to 0.00000445 as possible.
Target: 0.00000596 first and then 0.00000742.
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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