Trade Recommendation: Simple Token
The Simple Token/Bitcoin pair (OST/BTC) has been in a downtrend since January 11, 2018. The pair has shown further signs of weakness on February 23, 2018 when it posted a false breakout above 0.00003 resistance. The pair went as high as 0.00003896 on that day with volume of 34.5 million OST units only to close at 0.0000285.
The resistance was confirmed on March 5 when the pair tried to go above 0.00003 again, but bears repelled the advance. This was a signal to participants that bears are still in control of the market. Consequently, OST/BTC broke the 0.00002 support on June 4, triggering a selling frenzy that saw the pair generate seven consecutive red candles on the daily chart.
However, this type of plummet is unsustainable. We’re already seeing signs that the pair is ready for a strong bounce.
Technical analysis show that the Simple Token/Bitcoin pair is hovering above the 0.0000145 support. This is the pair’s final support level so there’s an expectation that bulls will try to defend it. In addition, OST/BTC is in extreme oversold territory. Bears are bound to run out of ammunition. Lastly, the daily candle is detached from the 4-day, 8-day, and 21-day moving averages, which affirms the view that the drop cannot be sustainable.
The strategy is to buy as close to 0.0000145 support as possible. Once bulls successfully defend this support level, the market will likely bounce to our initial target of 0.00002. We’ll revisit the pair once the target is hit.
The process may take less than a month.
Daily Chart of Simple Token/Bitcoin on Binance
As of this writing, the Simple Token/Bitcoin pair is trading at 0.00001491 on Binance.
Summary of Strategy
Buy: As close to 0.0000145 as possible.
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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