Golem (GNT/BTC) came off lows of 0.00001803 on November 20, 2018. At that price, the market was down by over 80% from the 2018 high of 0.0000909. This is an immense drop.
An in-depth look, however, shows that the fresh yearly low was the result of a shakeout. At the end of November 20, the market closed above 0.000019, which is the parabolic support. The swing to the low price level and quick recovery of the support ignited a rally to 0.00002771 on December 3. On that day, the market printed volume that’s over 300% of its daily average.
While the heavy volume buzz should have been enough for a range breakout, GNT/BTC pulled back. It appears that the accumulation stage is not yet over. Nevertheless, we’ll take this opportunity to accumulate as well.
Technical analysis shows that GNT/BTC is still trading within the accumulation range of 0.00002479 and 0.000018. It recently breached the range midpoint of 0.00002151 so we’re fairly certain that the market is en route to the yearly low of 0.000018. This is where we join smart money investors.
The strategy is to buy as close to 0.000018 as possible. If GNT/BTC respects this support, we can expect a quick move up to range midpoint and initial target of 0.00002151. Feel free to lock in gains here. You may want to leave a small portion of the amount for the possible move up to 0.00002479.
The process may take less than a month.
Daily Chart of Golem/Bitcoin on Poloniex
As of this writing, the Golem/Bitcoin pair is trading at 0.00001903 on Poloniex.
Summary of Strategy
Buy: As close to 0.000018 as possible.
Targets: 0.00002151 and 0.00002479.
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.