Trade Recommendation: TRON/Ethereum
After days of heavy selling, the cryptomarkets are starting to show signs of life. It appears that bears are running out of ammunition just as many altcoins are about to hit long-term support levels. One of those altcoins is TRON/Ethereum (TRX/ETH).
Technical analysis show that TRX/ETH is at the tail end of its corrective period. The falling wedge on the daily chart is about to touch the apex. At the same time, TRX/ETH is hovering above a trendline that’s been keeping the pair’s long-term uptrend alive. We expect demand to surge as the price comes close to this support. Add that to the narrowing trading range and we have the ideal conditions to spark a rally.
Adding fuel to the fire is the daily RSI where we can see a bullish divergence. More importantly, the RSI seems to be creating a broadening wedge pattern. If the support holds, then the next stop of the RSI might be close to oversold territory. This tells us that bulls are brewing a powerful rally.
The strategy is to buy the breakout at 0.000072 after the pair prints volume of more than 110 million TRON units. Even though bears are exhausted, they will do their best to keep market control. TRX/ETH needs buyers to absorb the selling pressure.
Once breakout is complete, the ensuing rally would likely take the pair to our target of 0.0001.
The process may take less than one month.
Daily Chart of TRON/Ethereum on Binance
As of this writing, the TRON/Ethereum pair is trading at 0.00007136 on Binance.
Summary of Strategy
Buy: Breakout at 0.000072 with volume of 110 million TRON units.
Stop: 0.00007 after 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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