Trade Recommendation: Stellar
We’ve been tracking the Stellar/Bitcoin (XLM/BTC) pair for some time now and for good reason. The pair has been retracing after generating a high of 0.00006789 on January 3, 2018. That means for about nine months, the pair has been trading bearishly. However, recent price action finally enabled XLM/BTC to leave bear country.
Technical analysis shows that Stellar/Bitcoin took out resistance of 0.00036 on September 21, 2018. This allowed the pair to breakout from the large symmetrical triangle pattern on the daily chart.
The breakout looks convincing as well. XLM/BTC printed volume that’s over 150% of its daily average. On top of that, the daily RSI also broke out of its own symmetrical triangle. This tells us that momentum is on the side of the bulls.
With heavy momentum, the breakout rally is currently underway. So far, bulls have managed to take the pair to as high as 0.00004489 today, September 23. However, the pair is currently overbought in the daily chart. We can expect the market to pull back as breakout traders and bottom fishers take profits. This is your chance to buy cheap.
The strategy is to buy on dips as close to 0.000039 as possible. As long as bulls keep the market above this level, they will attract the momentum needed to rally to our target of 0.00006.
The process may take less than a month.
Daily Chart of Stellar/Bitcoin on Binance
As of this writing, the Stellar/Bitcoin pair is trading at 0.00004249 on Binance.
Summary of Strategy
Buy: On dips as close to 0.000039 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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