Trade Recommendation: TRON
TRON (TRX/BTC) is one of the few coins that have remained stable in spite of the massive November selloff. While bears worked hard to push the market below the yearly low of 0.00000259, bulls fought back and managed to lift the market above 0.000003. This happened twice: when the market dropped to 0.00000273 on September 12 and on November 20 when it touched 0.00000284.
As a result, the market moved back and forth between 0.000003 and 0.000004 for months. Recently, however, TRX/BTC has been showing signals that it is ready to break out of the range. This gives us a very good opportunity to anticipate the breach of the range high.
Technical analysis shows TRX/BTC is poised to break out of a triple bottom pattern and launch a bull run. We have several reasons to support this view.
First, even though the market has been trading within a range, a closer look at the 12-hour chart reveals that it has also printed a higher high of 0.00000429 on October 8 and higher low of 0.00000284 on November 20. At the very least, this tells us that bulls are expanding their territory.
In addition, we can see the 200 moving average crawling below the 12H candles. The flip from resistance to support of this indicator is bullish. The 200 MA now acts as a support on the 12H chart that can help TRX/BTC take out the range high.
The strategy is to wait for the market to breakout and retest 0.000004. This bear market has been notoriously setting up bull traps. Many coins have broken out of the range high with heavy volume only to find themselves back to support. Thus, it would be best to buy the retest of the breakout to be on the safe side.
If the market follows the script, the target is 0.00000523. The process may take less than a month.
12-Hour Chart of TRON/Bitcoin on Binance
As of this writing, the TRON/Bitcoin pair is trading at 0.00000382 on Binance.
Summary of Strategy
Buy: Retest of 0.000004 after the breakout.
Stop: 0.00000386 after the breakout.
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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