Vertcoin has been dipping lower for more than two weeks now. During the time window mid-March - mid-May, the coin was consolidating within a box with a lot of choppy trading going on. Since then, the coin pushed lower after a failed move higher. Series of lower lows and lower highs has occurred since and the pair is now trading all the way back to 0.000138, which is the lowest the Vertcoin has traded since August 2017.
Although this is a strong move to the downside, nothing ever happens vertically in one-direction. Hence, a correction to the upside is expected. A first sign of the possible correction may be the break of a short trend line connecting highs in the last couple of days. The break would facilitate a bigger move to the upside and a possible test of the big 0.000210 level, which represents a horizontal block of the resistance coupled with 38.2% Fibonacci retracement of the last big move lower.
A possible way to trade this situation would be to wait for the break of the trend line and a comfortable close above both the trend line and the 100 MA on H4 chart. A position, probably around 0.0001550 as it now stands, could be opened with a target of 0.000210. On the other side, any move back below the trend line will most likely cause a false break out and the new lows.
Although this is a strong move to the downside, nothing ever happens vertically in one-direction. Hence, a correction to the upside is expected. A first sign of the possible correction may be the break of a short trend line connecting highs in the last couple of days. The break would facilitate a bigger move to the upside and a possible test of the big 0.000210 level, which represents a horizontal block of the resistance coupled with 38.2% Fibonacci retracement of the last big move lower.
A possible way to trade this situation would be to wait for the break of the trend line and a comfortable close above both the trend line and the 100 MA on H4 chart. A position, probably around 0.0001550 as it now stands, could be opened with a target of 0.000210. On the other side, any move back below the trend line will most likely cause a false break out and the new lows.