Trade Recommendation: Wanchain
Wanchain (WAN/BTC) is a market that may have finally bottomed out. On March 9, 2019, it took out resistance of 0.000097. This triggered the breakout from the rounding bottom on the daily chart.
While the breakout was interesting, what caught our attention was the extreme heavy volume on that day. On March 9, Wanchain had volume of 28.503 million. That number is the second highest volume of the market’s history on Binance. To give you a better perspective, the volume was over 529% of its daily average. This tells us that demand for the market at current prices is strong, which is why we’re considering going long on Wanchain.
Technical analysis shows that WAN/BTC is creating a large bull pennant on the daily chart. Just like with many other coins that we’ve covered recently, the chart indicates bullish continuation. In other words, the market is very likely to resume its uptrend once consolidation is over.
The market’s volume since March 9 supports our bias. The significant decline in volume is a sign of bullish continuation. It tells us that sellers are losing ammunition. When supply dries, Wanchain will likely march to our target.
The strategy is to buy as close to 0.000097 as possible. If bulls manage to hold this level, WAN/BTC will likely rally to our target of 0.000142.
The process may take less than a month.
Daily Chart of Wanchain/Bitcoin on Binance
As of this writing, the Wanchain/Bitcoin pair is trading at 0.0001018 on Binance.
Summary of Strategy
Buy: As close to 0.000097 as possible.
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.