The Monaco/Ethereum pair (MCO/ETH) has been bearish since it generated a lower high of 0.042394 on October 31, 2017. On the same day, however, it broke below support of 0.025. The breakdown ignited a selling frenzy that saw the pair plummet to 0.011329 on November 24.
At this price level, the pair flashed oversold readings. As if on cue, MCO/ETH rallied and climbed to as high as 0.03998 on December 5. The pair’s meteoric rise was met by heavy selling; courtesy of bottom pickers. From that point, the market generated a series of lower highs and lower lows until it bottomed out at 0.007806 on February 6, 2018.
Interestingly, the market flashed oversold readings at this price point and MCO/ETH rallied once again. It catapulted to 0.039 on April 19. While the market has been dropping since, we may have an opportunity to pick the bottom.
Technical analysis show that Monaco/Ethereum reverses whenever it drops to 30 RSI support. As of this writing, the RSI is at 32.25 and it is well on its way down to 30. Looking at the price, it appears that the 30 RSI coincides with support of 0.0105. That’s where we’ll pick up the market.
The strategy is to buy as close to 0.105 support as possible. As long as bulls stay above 30 RSI support, they will likely ignite a rally to our target of 0.025.
The process may take a month.
Daily Chart of Monaco/Ethereum on Binance
As of this writing, the Monaco/US Dollar pair is trading at 0.011431 on Binance.
Summary of Strategy
Buy: As close to 0.0105 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.
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