Weekly Review: ASTounding Rally

AST goes airborne, Dash traps sellers

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March 29, 2019 Welcome to the weekly edition of the CoinDesk Markets newsletter! Every Friday we will review our cryptocurrency price predictions posted during the week via CoinDesk Markets Twitter or our private room on StockTwits, the CoinDesk Dojo.  "Trades You Missed" will feature our favorite trade ideas or technical analysis insights that accomplished impressive gains, where as "Trades We Missed" will feature those that took a turn for the worse. Wins and losses are both part of the trading game, so we hope you will learn how to replicate our successes and minimize losses!   AirSwap Goes Airbourne AST: Price: $0.046137 | MCAP: $7.2 million | Maximum Gain: +30% Why we liked it: Posted on March 25 in CoinDesk Dojo first and then later on CDM twitter, Airswap's BTC denomination was showing all the signs of an impending bull breakout, and a substantial one at that.  What first caught our eye was the month long triangular consolidation pattern that was evident on the daily time frame. This suggested either a breakout or breakdown was just just a matter of time, so we then took a deeper look into the indicators to identify if the odds were stacked in either bullish of bearish favor.  Since bullish volume spikes were present, one volume indicator we looked at to confirm if accumulation or net buying was taking place, was the on balance volume indicator (OBV).  Indeed, the OBV was making new highs on every single time frame, which showed the running total of AST/BTC trading volume was increasing while price was consolidating. Many believe an asset's price will eventually follow its volume flow, which was proven case in point here with a +30 percent price increase in just three days.  Now trading above the 200 day moving average (MA) and having broken out of a Bollinger band squeeze on the 3-day chart, it looks like the AST/BTC medium term trend is beginning to shift from bearish to bullish. The bull case would be diminished with price acceptance below the MA.  The Trade The Result A DASH of Regret DASH: Price: $97.35 | MCAP: $848.3 million | Maximum Loss: -2.77% What went wrong: On Monday, the usual market trendsetter bitcoin (BTC/USD) was looking weak and had fallen roughly 3 percent from its daily open, causing many well known cryptocurrencies to post magnified losses. At the time, DASH/USD was forming a bearish market structure known as a "head and shoulders top," seemingly setting the stage for it to be the next crypto to join BTC in its intraday plunge.  Adding to the potential of a breakdown was the relative strength index (RSI) quickly dropping below 50 on the 4-hour time frame, which is considered to be bearish as all RSI values below 50 generally are.  For these reasons, the optimal trade appeared to be a short/sell with the previous resistance level of $78 as the final target.  The rationale was sound, but the broader cryptocurrency market had other plans in mind. Bitcoin quickly rebounded from the sub $3,900 levels and the rest of the market followed suit. While the DASH trade did reach profit, having briefly fallen to $87 on Kraken, it made light work of a rebound and jumped roughly 10 percent to pierce $95 on Wednesday. The sudden change in direction was largely due to bitcoin's bounce from the crucial 30-day moving average support.  However, our analyst did not wait for DASH to trigger stop loss placed at $95 and announced short unwind in European trading hours on March 27 when the price was around $92.50.  Looking ahead, DASH is not out of the woods yet. Only a daily close above the depicted daily resistance area of $96-99 would create a bullish view and set scope for a move to test the 200 day moving average currently located near $110.  The Trade The Result   We're excited to announce the launch of the CoinDesk Dojo, a premium subscription part of StockTwits' recently announced Premium Rooms product. Ask the analysts—Omkar, Sam and Seb—questions about charts and talk with other traders looking to profit off the volatility of the crypto markets.  Create an account on StockTwits and then subscribe! Subscribe Here   Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. Copyright © 2018 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? 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