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.

Target: 0.000142

Stop: 0.000092

 

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.