Raiden Network Token (RDN/BTC) may be trying to carve its bottom after closing 2018 strong. On December 22, 2018, it rallied to as high as 0.00009286. At that price, the market was up by over 96% from the December 15 low of 0.00004735.
While the rally faded, the market did not revisit the 2018 support of 0.000047. Instead, the market appears to be generating a higher low setup of 0.00006141. With a higher low in place, we feel confident in entering the market.
Technical analysis shows that RDN/BTC is forming bullish patterns in both the longer and shorter time frames.
From a long-term perspective, we can see RDN/BTC creating a double bottom structure after participants defended 0.000047 support in December. The formation of this pattern tells us that a durable bottom is in. The market may range trade for some time but at least it can rely on this level to keep prices from falling.
From a short-term point of view, the market appears to be creating a cup and handle structure. This pattern is bullish, as it indicates that market participants are ready to enter at a higher price. For now, it seems that the fear of missing out is in. This sentiment will be instrumental in driving prices higher.
The strategy is to buy on dips as close to 0.00006497 support as possible. As long as Raiden Network Token stays above this level, it will likely gather the momentum to rally to our target of 0.00008516. Take that out and the next target is 0.000111.
The process may take less than a month.
Daily Chart of Raiden Network Token/Bitcoin on Binance
As of this writing, the Raiden Network Token/Bitcoin pair is trading at 0.00006675 on Binance.
Summary of Strategy
Buy: As close to 0.00006497 as possible.
Targets: 0.00008516 and 0.000111.
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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