Trade Recommendation: VeChain
VeChain (VET/BTC) is a coin that is currently trading sideways. The market dropped to as low as 0.00000102 on December 15, 2018. While the market looked like it has more downside potential, we were not surprised that VET/BTC took the opposite direction and bounced. That’s because 0.000001 is the market’s line in the sand. After VET touched this level on August 14, 2018, it rallied to as high as 0.00000272 on September 4.
Currently, VeChain appears to be carving a bottom around 0.000001. The new base that’s being built should help the market reach greater heights.
Technical analysis shows that VET/BTC looks ready to revisit the range low of 0.00000102. It’s been range trading between 0.00000102 and 0.00000119 for about a month and a half. In the process, VeChain has created a double bottom structure on the daily chart to show that a durable bottom is in place.
In addition, VeChain printed volume that’s over 184% of its average daily volume yesterday, January 9, 2019. The volume uptick tells us that the fear of missing out has entered the market. A higher low should help confirm this view.
The strategy is to buy on dips as close to range low of 0.00000102 as possible. As long as VeChain remains above this level, it will likely attract the momentum to climb to our initial target of 0.00000119. Take that out and 0.00000142 is next.
The process may take more than a month.
Daily Chart of VeChain/Bitcoin on Binance
As of this writing, the VeChain/Bitcoin pair is trading at 0.00000107 on Binance.
Summary of Strategy
Buy: As close to 0.00000102 as possible.
Targets: 0.00000119 and 0.00000142.
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.