Cryptocurrencies Polkadot, Ethereum, and Litecoin are all setting up well as they build bases near new price highs. While they may not enjoy the renown of Bitcoin, they are all top ten market cap cryptocurrencies.
I previously blogged about Ethereum and Litecoin earlier this year and again this month. They both continue to act well, forming high handles with large bases. This type of pattern always catches my attention since it offers enormous potential. Should ETH and LTC break out to new highs on volume, I will look to add to my positions. Of course, I will have a stop loss in place to limit my risk should they turn against me.
Polkadot is also tightening up as it approaches new price highs. What really impresses me about this chart is the compact action after the explosive move from $4 to $40. Other than one extremely volatile day in February, for the most part, DOT has been consolidating in an orderly fashion. In addition, shakeouts below the major support levels can also be valuable as they act as a reset to flush out weak hands. I will be monitoring the $40 level closely to see if DOT can breakout on volume. It is important to note that cryptocurrency trading is extremely volatile and risky. Reduced position sizing and proper risk management is an absolute must for anyone deciding to trade in this space.
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Full Disclosure: I currently own Bitcoin, Litecoin and Ethereum.
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