The crypto market had another reason to rally following yesterday's positive inflation report. The inflation data showed a significant decelerating trend, which means that the probability of a so-called "soft landing" (going through a hiking cycle without entering a recession) actually increased. Make no mistake, we are not out of the woods yet; inflation is still 8.5%, but cryptocurrencies, along with other risk assets, just got a significant boost which might last for another couple of weeks.
Arweave is a relatively new project with a lot of potential. They focus on storing data on a blockchain. They do not have any specific fundamental reason to rally, but the technical setup is too nice to overlook. I will use the 4-hour chart to bring home the point, but daily looks just as good. We can clearly see an ascending triangle forming with a base at the black line, which is represents significant support and where the coin first bottomed. Since then, it has been only a nice series of higher highs and lower lows until we started consolidating into this triangle.
There are two ways to trade this setup:
1) One is to go long now, which would provide a great risk/reward (R/R). The profit target is the green line, which is a very significant resistance + there is also the 200-day simple moving average. The stop loss would be at the most recent low, shown by the red line. This gives us a R/R of 4:1
2) The other way is to wait for the break. In that case, I would use the line of the break (orange) as the stop loss. If you were able to get an entry at that point and set the stop loss there as well, that would give you zero risk (or at least very low risk).
Happy trading!
Best wishes,
Dollero Exchange
Arweave is a relatively new project with a lot of potential. They focus on storing data on a blockchain. They do not have any specific fundamental reason to rally, but the technical setup is too nice to overlook. I will use the 4-hour chart to bring home the point, but daily looks just as good. We can clearly see an ascending triangle forming with a base at the black line, which is represents significant support and where the coin first bottomed. Since then, it has been only a nice series of higher highs and lower lows until we started consolidating into this triangle.
There are two ways to trade this setup:
1) One is to go long now, which would provide a great risk/reward (R/R). The profit target is the green line, which is a very significant resistance + there is also the 200-day simple moving average. The stop loss would be at the most recent low, shown by the red line. This gives us a R/R of 4:1
2) The other way is to wait for the break. In that case, I would use the line of the break (orange) as the stop loss. If you were able to get an entry at that point and set the stop loss there as well, that would give you zero risk (or at least very low risk).
Happy trading!
Best wishes,
Dollero Exchange