The Augur/Ethereum (REP/ETH) pair launched its bull run on December 19, 2017 when it broke out of 0.08 resistance. Within 24 hours after the breakout, the market went as high as 0.13414789. Breakout players took advantage of the massive rise in value in such a short period of time as they dumped positions.
As selling commenced, the market went as low as 0.08408359 on December 22. While the market did bounce and reached 0.12390329 on December 23, the rally wasn’t strong enough to keep the pair’s bullish momentum intact. With a lower high in place, REP/ETH plunged. It eventually broke 0.08 support on January 4, 2018. Although the breach of this support level is bearish, it opens up an opportunity for you to buy the bottom.
Technical analysis show that the Augur/Ethereum pair is well on its way down to major support of 0.05. This is the market’s firmest support because the pair never closed below this level. At this point, the only remaining sellers are most likely the ones cutting their losses. As supply dries, it can be a chance for the market to ignite a massive rally.
The strategy is to buy as close to 0.05 as possible. If the market respects this level, it will likely bounce to our target of 0.08.
Take note: the market is still in downtrend, and we’re just playing the bounce. The entire process can take a month.
Daily Chart of Augur/Ethereum on Poloniex
As of this writing, the Augur/Ethereum pair is trading at 0.051539 on Poloniex.
Summary of Strategy
Buy: As close to 0.05 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.
from Crypto Currency Online https://cryptocurrencyonline.co/trade-recommendation-binance-coin/