Trade Recommendation: Waltonchain
Waltonchain (WTC/BTC) is a market that’s working hard to carve a bottom. The crypto token has been correcting ever since it posted a 2019 high of 0.0005323 on April 21st. The retracement drove the cryptocurrency to lows of 0.0001135 on June 26th. That’s a plunge of close to 80 percent in a little over a month.
The sharp downturn put Waltonchain in an extreme oversold condition on the daily RSI. Bulls exploited the bearish exhaustion by igniting a rally that saw the market climb to as high as 0.0002839 on July 7th. While the cryptocurrency is pulling back, we can start to position for bottom picking.
Technical analysis shows that WTC/BTC is headed to support of 0.00012. We have this view because the market breached the current range midpoint of 0.000202 on July 14th. It then retested it as resistance on July 15th. With this price action, it is very probable that Waltonchain will drop to 0.00012.
The move down to our range low of 0.00012 is not that bad because it will enable the market to print a double bottom pattern. The structure would likely instigate a bullish reversal that can propel Waltonchain to our targets.
The strategy is to buy on dips close to 0.00012 support as possible. As long as Waltonchain stays above this level, there’s a very good chance that it will rally to our targets of 0.000202 and 0.000284.
The process may take a month.
Weekly Chart of Waltonchain/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.00012 support as possible.
Target: 0.000202 and 0.000284.
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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