Trending
Crypto
  • BTC
    16889.78 2.43%
  • ETH
    1265.2 3.88%
  • SOL
    13.57 1.65%
  • ADA
    0.31 1.72%
  • AVAX
    12.9 3.21%
  • DOT
    5.4 1.51%
  • LTC
    78.23 2.75%
  • BCH
    112.91 1.34%
  • CRO
    0.06 2.06%
  • MATIC
    0.87 3.45%
  • LINK
    7.43 1.13%
  • XLM
    0.09 0.66%
  • UNI
    5.7 4.37%
  • SHIB
    0 1.54%

Possible short of APE/USDT?

Today’s analysis will be looking at a specific trade of APE/USDT with stoploss and targets.

For those of you, who have never heard about Apecoin, this token covers a new NFT collection of Bored Ape Yacht Club. All owners of NFTs were given some portion of APE tokens through airdrop, which was also visible in the chart. Hype around NFTs of Bored Ape Yacht Club is still pretty big, because the price is still relatively high.

TradingView Chart

1D chart of Apecoin chart, Source: Author’s analysis, tradingview.com

Let’s look at the trade

Looking at this specific trade, we need to zoom in to 1H chart. I would be looking at short trade with the following parameters:

  • Entry: 15.87 USDT
  • 1.Target: 13.09 USDT
  • Stoploss: 18.47 USDT

We would be thus looking at profit of 17%, while risking around 16%. This is not ideal position when looking at RRR of 1:1, but mostly due to the huge hype of APE token I would maybe consider bigger stoploss, just to decrease it later. This is a very common practise.

Read also: Coinbase has launched its NFT marketplace

TradingView Chart

1H chart of Apecoin with given trade, Source: Author’s analysis, tradingview.com

Why this set-up?

If we look at the chart, we can see three strong rejections at the Top, which were followed by a price drawback. The rejection at TOPs is ideal situation to enter the short position. This means that we have already missed the ideal entry, however, we can still enter the trade at retracement. I would only enter the trade through limit orders, not market, since it would only increase our risk and decrease potential profit. Therefore, we should wait till the price retraces a bit back up, before it falls down further.

Probably the biggest risk of this trade is the fact that we need to use limit order for the short. However, this is very common for limit orders, so we always need to account for this risk.

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...

Comments

Post has no comment yet.

Want add your comment? Sign up or Sign in