AION (AION/BTC) looks like a market that wants to trend higher. It generated a 2018 low of 0.0000318 on November 26. At that point, the market was ripe for a bounce. It was extremely oversold on the daily chart. On top of that, a bullish divergence was seen on the daily RSI. These signals pointed to the possibility of a relief rally. That’s exactly what AION did.
AION rallied to as high as 0.0000454 on December 5. While the market immediately corrected after hitting the range resistance, it generated a higher low setup of 0.0000331 on December 11. This was the initial signal that the market was turning bullish, which is why we started to watch AION. The price action that we’ve seen over the last few days has given the confidence to seriously consider a long position in the market.
Technical analysis shows that AION/BTC appears to be bottoming out. It is creating an ascending triangle in an attempt to reverse the market’s trend. Recently, the price seems to have established another higher low of 0.0000368 on December 28. If our read is correct, this higher low should be the E-wave or the final leg down of the triangle before the breakout.
More importantly, market participants are now buying the range midpoint of 0.0000384. They are not letting the price fall any further. This tells us that bulls are using the midpoint as a staging ground for the breakout.
The strategy is to buy as close to 0.0000384 support as possible. As long as the market is above this level, it will likely generate the momentum to take out 0.000045 and climb to our target of 0.00006.
The process may take less than a month.
Daily Chart of AION/Bitcoin on Binance
As of this writing, the AION/Bitcoin pair is trading at 0.00004 on Binance.
Summary of Strategy
Buy: As close to 0.0000384 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.