Trade Recommendation: Stratis
Stratis (STRAT/BTC) has been recently making huge waves. It plummeted to as low as 0.000003 on December 6, 2018. At that price, the market lost about 99.82% of its value from the 2018 peak of 0.001681. This made STRAT/BTC one of the worst performers of the year. Nevertheless, it appears that this one huge pullback is setting Stratis for a big comeback.
Technical analysis shows that STRAT/BTC has come back to life after breaching resistance of 0.000292 on December 20, 2018. The breakout inspired a strong rally that sent the market to as high as 0.0004225 on December 24. In about three weeks, Stratis increased by close to 14,000% from the 2018 bottom!
With such astronomical growth in such a short period of time, Stratis is due for a correction. It is currently overbought on the daily chart. On top of that, volume has significantly declined since the rally faded on December 20. This indicated that buyers are losing steam. The disappearance of buyers might send Stratis to our range low.
The strategy is to buy as close to 0.000292 support as possible. We are confident that this support will hold for several reasons. First, Stratis struggled to go above 0.000292 for four months. Now that it has, 0.000292 can be considered as a durable support level. On top of that, we have the 200 moving average crawling at that level.
As long as bulls stay above 0.000292, they will likely generate the momentum to rally to our range midpoint of 0.0003769. Take that out and the next target is 0.000462.
The process may take less than a month.
Daily Chart of Stratis/Bitcoin on Binance
As of this writing, the Stratis/Bitcoin pair is trading at 0.0003465 on Binance.
Summary of Strategy
Buy: As close to 0.000292 as possible.
Targets: 0.0003769 and 0.000462.
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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