Crypto
  • BTC
    21192.4 -1.07%
  • ETH
    1216.01 -1.51%
  • SOL
    39.98 -4.79%
  • ADA
    0.5 1.02%
  • AVAX
    20.21 -4.17%
  • DOT
    7.97 -1.39%
  • LTC
    57.78 -1.09%
  • BCH
    114.7 0.68%
  • DOGE
    0.07 7.28%
  • CRO
    0.13 -0.78%
  • MATIC
    0.58 -2.76%
  • LINK
    6.92 -3.98%
  • UNI
    5.63 0.86%
  • SHIB
    0 -1.78%

Real example of a crypto trade – Chia Network

In today´s analysis I would like to show you a coin under the name of Chia Network. It is a bit smaller coin with lower market capitalisation. Let´s look at the chart and what would I do with it.

Why am I interested in Chia?

We have seen a lot of altcoins do interesting percentage increases over the last two weeks. That is why it is difficult to find a coin that would still have a potential to increase. However, it is important to note that the fact that some coin has not yet increased does not mean that it will in the future. It can even be a warning that there is something wrong with the coin.

Read more: The Fed plans to reduce its balance sheet

How would I trade it?

Well, for me, the fact that it has not pumped yet, means that it has a potential to do so. The overall structure is a falling wedge, which often signifies the bottom of the trend. But we can see that we have been bottoming for a while, and we have even created a higher low. Since we have been following this coin for a while, we know that this coin hardly reacts to movements of Bitcoin and the overall market. This means that there is a pretty high chance that this coin has the potential to overcome a downtrend of Bitcoin or other large cap altcoins.

Another reason are pretty high volumes at the bottom. This usually is a signal that there is something brewing with the coin. Looking at the concrete setup, I would enter the trade even at the market price, which currently is 67.2 USDT. The first target would be around 105 USDT, with the potential return of around 58% (no leverage used). The stop loss would be around 58 USDT, which is a potential loss of 12%. The RRR is thus very interesting with almost 6R.

TradingView Chart

Possible potential trade of Chia, Source: Author´s analysis, tradingview.com

Conclusion

Even though this is not a financial advice, I would still watch out for any price movements on this coin in the coming days. If we break above the upper trendline and then we can see a higher high and uptrend.  

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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