Altcoin Buy Signals for May 21st, 2019
Buy signals for Litecoin (LTC), Cardano (ADA), Holochain (HOT), Polymath (POLY) and 0x (ZRX) using the Ichimoku Kinko Hyo system.
Litecoin is sitting in an ideal and excellent zone for an entry. The chart above is the hourly chart for Litecoin. An easy and strong buy zone is just above at 93.93. Price coming to this level would bring both price and the Chikou Span above the Kumo. More importantly, the Chikou Span would be in clear and open space, meaning it would not intercept any candlesticks over the next 10 periods.
Similar to Litecoin’s chart – almost exactly in its structure – is Cardano’s hourly Ichimoku chart. I don’t think I’ll need to do a lot of explaining on this chart, but suffice to say that the entry at 0.08735 will achieve all of the most bullish entry conditions for an ideal Ichimoku breakout trade.
Holochain has had the most bullish trading session out of all the altcoins that I monitor. Just today, it has traded up as much as +24% and has made new all-time highs on its US Dollar pair. Big moves up like this for cryptocurrencies, especially altcoins, are almost always met with swift and stiff selling. However, Holochain’s price action has been very stable and supportive. I am currently long on this altcoin, but if I were trading it and wanting an entry, then I would wait for a return to the Kijun-Sen on the 4-hour Ichimoku chart.
Talk about a squeeze! Polymath (POLY) has been one of the tightest trading ranges I’ve seen over the past seven trading days. Polymath has also had some bullish fundamental news – it has partnered with Cardano for the tokenization of securities. Currently, Polymath is trading up +8% against Bitcoin. And it is very near a key breakout level at 0.00001251. All conditions for taking a long trade here have been met. The Tenken-Sen is above the Kijun-Sen, Future Span A is above Future Span B, and both price and the Chikou Span are above the Kumo. The only thing preventing me from adding to my position from this current level is the most recent swing high (which is just below our entry price). Once we break that swing high, I’m comfortable entering back in long.
I’m sure that this pattern is beginning to look very familiar! 0x (ZRX) is another altcoin that is experiencing a near bullish breakout of the Ichimoku Cloud. If you recall my article yesterday on Ethereum, even Ethereum is in this right consolidation. For 0x, we have a very, very ideal setup. Price, the Tenken-Sen and the Kijun-Sen are all close to one another. That is important because as price and the Chikou Span begin to move out of the Kumo, having the Tenken-Sen and the Kijun-Sen close to price prior to a breakout provides a great basis for a strong and long-acting trend. This is because the threat of a mean reversion back to the Kijun-Sen is almost 0 when price is trading within such close proximity to it.