Trade Recommendation: TRON

The TRON/Bitcoin pair (TRX/BTC) showed bullish signs on January 2, 2018 when it breached 0.000004 resistance. The breakout was so strong that it skyrocketed to 0.00002047 on January 5. In three days, the pair rose by over 411%. Momentum players were happy to exploit the pair’s astronomical ascent as they dumped positions.

Faced with heavy selling pressure, TRX/BTC dropped to 0.00000382 on January 16. While the market did rally, it generated a lower high of 0.00000945 on January 18. From that point, the pair had been posting a series of lower highs while respecting 0.000004 support until recent events.  

Technical analysis show that TRON/Bitcoin have broken below 0.000004 on March 7. It went as low as 0.00000315 on March 18 before bulls stepped in to push the price up. Yesterday, March 20, the pair reclaimed 0.000004 support with heavy volume. The move below 0.000004 appears to be a bear trap. Usually when this happens, the pair finds the momentum to climb to the top end of the range.

The strategy is to buy as close to 0.000004 as possible. If bulls preserve the support, the market will likely consolidate at this price before it can move to our target of 0.000008. The process may take a month.

Daily Chart of TRON/Bitcoin on Binance

As of this writing, the TRON/Bitcoin pair is trading at 0.00000435 on Binance.

Summary of Strategy

Buy: As close to 0.000004 as possible.

Target: 0.000008

Stop:  0.0000038

 

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.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.