The NXT/Monero (NXT/XMR) pair launched its bull run on December 7, 2017 when it breached resistance of 0.002. The momentum of the breakout was so strong that it went as high as 0.00588 on December 24. As the market grew by 194% in less than three weeks, it prompted breakout players to take profits.
Unfortunately for buyers who bought the top, the market’s bull run came to an abrupt end when it broke below support of 0.002 on December 29. NXT/XMR went into a freefall, and it seems that it is about to take a relatively long consolidation period.
Technical analysis reveal that NXT/Monero is well on its way down to firm support of 0.0005. At this price level, the market would have lost almost 92% of its value from the top. Hence, it might take the market some time to consolidate at 0.0005 to repair its technical damage. This can be your opportunity to accumulate positions while you trade the range.
The strategy is to buy as close as 0.0005 support as possible. If bulls defend this level, the market will likely climb to our target of 0.002. The process may take three months.
Daily Chart of NXT/Monero on Poloniex
As of this writing, the NXT/Monero pair is trading at 0.00061961 on Poloniex.
Summary of Strategy
Buy: As close to 0.0005 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.
Source : https://hacked.com