Disclaimer
I have to warn you that we highly recommend not taking a new long trade on ZRX. Before you place a new order, make sure your trading decision is in line with your strategy and risk management. The order described in this post was placed over a month ago and is already closed with profit.
Reason to Buy
Late December and early January were a really hot time for the cryptocurrency market.
Many retail traders were afraid of missing the opportunity to make money on the bullish movement and were ready to buy at any price. That led to high BTC dominance rates, around 74%. The market price of ZRX was 0.0000118, which is the lowest price point it has ever been at. After we bought ZRX, the entry-level was tested one more time. It gave us a little more confidence that we will not go below the level where we opened our long positions.
As practice shows, sometimes especially strong growth of Altcoins coincides with BTC consolidation. This time, the most significant growth of ZRX came on 4-5 February. That was just after BTC spent more than a week in consolidation and then strongly fixed above the $33k level. The connection between Altcoin's growth and the patterns on the BTC chart is not always obvious. That's why your trading decisions regarding low-cap Altcoins should take into account more fundamental parameters.
Reason to Sell
As for our long ZRX position, it was closed in the middle of February. This decision was made because of four factors
1) We saw that the price could not reach the very strong resistance level at 0.000062
2) We saw the next day's candle close 36% lower than the previous day's high. In total, our total profit from this trade was just over 216%.
3) The price failed to fix above the level of 0.0000417 on the chart, which we defined as a local resistance level.
4) Strong BTC corrections of 10-20% could have happened at any time, this is an ordinary correction for BTC. In that case, ZRX could exceed this correction many times over.
We understand that the position could bring more profits since it was not closed at the top of this movement, but we are quite happy with the result because it was purely a speculative idea. At the moment we think that opening a new long position in ZRX is unreasonably risky.
I have to warn you that we highly recommend not taking a new long trade on ZRX. Before you place a new order, make sure your trading decision is in line with your strategy and risk management. The order described in this post was placed over a month ago and is already closed with profit.
Reason to Buy
Late December and early January were a really hot time for the cryptocurrency market.
Many retail traders were afraid of missing the opportunity to make money on the bullish movement and were ready to buy at any price. That led to high BTC dominance rates, around 74%. The market price of ZRX was 0.0000118, which is the lowest price point it has ever been at. After we bought ZRX, the entry-level was tested one more time. It gave us a little more confidence that we will not go below the level where we opened our long positions.
As practice shows, sometimes especially strong growth of Altcoins coincides with BTC consolidation. This time, the most significant growth of ZRX came on 4-5 February. That was just after BTC spent more than a week in consolidation and then strongly fixed above the $33k level. The connection between Altcoin's growth and the patterns on the BTC chart is not always obvious. That's why your trading decisions regarding low-cap Altcoins should take into account more fundamental parameters.
Reason to Sell
As for our long ZRX position, it was closed in the middle of February. This decision was made because of four factors
1) We saw that the price could not reach the very strong resistance level at 0.000062
2) We saw the next day's candle close 36% lower than the previous day's high. In total, our total profit from this trade was just over 216%.
3) The price failed to fix above the level of 0.0000417 on the chart, which we defined as a local resistance level.
4) Strong BTC corrections of 10-20% could have happened at any time, this is an ordinary correction for BTC. In that case, ZRX could exceed this correction many times over.
We understand that the position could bring more profits since it was not closed at the top of this movement, but we are quite happy with the result because it was purely a speculative idea. At the moment we think that opening a new long position in ZRX is unreasonably risky.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.