Trade Recommendation: TRON
The TRON/Bitcoin (TRX/BTC) dropped to as low as 0.00000259 on August 16, 2018. At that price level, the market was down by over 87% from the 2018 peak of 0.00002047. Fortunately for TRX/BTC, 0.0000026 is a buy zone. Bulls used this level back in December 2017 as a staging ground to launch its parabolic run. Now, we’re seeing bulls use it to reverse the market’s trend.
Technical analysis shows that TRX/BTC took out resistance of 0.00000375 on October 7, 2018. This triggered the breakout from an inverse head and shoulders pattern on the daily chart. The breakout looked convincing as well. On October 7, the market printed volume that’s over 156% of its daily average. The price action attracted breakout traders who helped push the pair to 0.00000429 on October 9.
The rally, however, was seen as an opportunity by those who bought the bottom to take profits. As a result, TRX/BTC dropped to 0.00000333 on October 11. This price movement may be concerning because the pair went below the breakout level. The good news is the 30-day moving average came to the rescue as it acted as a reliable support. Bulls relied on it to lift the market above the breakout.
In addition, the daily RSI appears to be already in an uptrend. It has been generating a series of higher highs and higher lows indicating that bulls are gaining significant strength.
The strategy is to buy the breakout as close to 0.00000375 as possible. As long as the market is above this level, it will attract more breakout traders and bargain hunters. They will help push TRX/BTC to our target of 0.0000048.
The process may take a month.
Daily Chart of TRON/Bitcoin on Binance
As of this writing, the TRON/Bitcoin pair is trading at 0.00000386 on Binance.
Summary of Strategy
Buy: The breakout as close as 0.00000375 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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