It has been 3 straight weeks of GAINZ for DEXT/USDT, recording an impressive rally of >250%. At the time of writing at 17:00 (GMT+8), the price of one DEXT stands at 0.025. That’s a steal considering DEXTools has been called the ‘holy grail’ for Crypto traders worldwide, containing all the gadgets and data you’ll need to have that ‘edge’ above the rest.
What I personally dig among the array of functions, is the Token List function, allowing me to see ALL of the tokens that are currently held in any particular ETH address. This information is valuable especially for traders who track Whales, to anticipate or even follow where the tides crash.
The Turing Test
For those who do not know, a Turing Test (named after the famous English Computer Scientist Alan Turing, who cracked the Enigma, greatly contributing to the victory of WWII), is essentially a method used to distinguish the behaviors exhibited between a machine, and a man. Alternatively you can always catch Benedict Cumberbatch’s stellar portrayal of Alan Turing in The Imitation Game, explaining the theory.
DEXTools has recently introduced a heads-turning feature similar to the Turing test, which allows the user to distinguish between the transactions made by Humans Vs Bots! Imagine, being able to KNOW for a fact that you are trading against bots, and quickly increase/decrease your position size accordingly.
The fundamentals definitely got me really pumped for this project, simply because of the strong advantages it brings to the Crypto-trading community! But hey, most importantly does the charts also paint the same picture…? Let’s take a look!
As always, we’ll take it from the top down until we find our potential entry level:
- Price is well above the 17EMA, indicating strong bullish momentum.
- We see that price has clearly broken past a crucial resistance zone and found support from the same zone. (0.0218-0.023)
- Taking Fibonacci from the previous AB wave, we can see that price is currently sitting around the fibo extension zone between -27.2 to -61.8.
- Price is rejecting off the same highs made a couple of days ago, potentially signaling that the bulls may be exhausted and we’re looking at the start of a retracement.
When it comes to trading, assumptions have to be made in order to calculate the possibilities of…well basically every scenario. Doing so mitigates your risk, as well as prevents you from taking low probability trades when things go south.
- I am going to assume that the retracement has began after seeing the Double Top formation on Daily & H4 timeframes.
- 17&50 EMAs are diverging, bullish momentum is in no way slowing down.
- Since this latest CD wave is assumed to have come to an end, I will take Fibonacci from the start of the wave till the tip, showing us that the resistance-turned-support zone coincides with the Fibo zone between 38.2 to 50.
- We can also draw a trendline from the start of the CD wave and keeping it as close as possible to the current price action, without cutting any candle bodies, revealing to us a potential setup.
Based on the bullish outlook and sentiment shrouding this token, combining it with all the confluences we’ve seen thus far, I will be predicting a bullish rally based on this scenario below.
Using the linechart trick on H1:
Looking left, we see a clear entry point level at 0.0222, that acted as a crucial level in the most recent price action. Target will be as usual, -27.2 extension point which lines up around 0.035.
What I will be expecting to see on H4:
This will be a high-probability trade given there are a total of 3 confluences (Fibo, resistance-turned-support zone, trendline). In addition to that, we will be following the trend instead of against it, putting us in a favourable position.
Set your buy limits here now!: https://bit.ly/DEXTUSDT_SURGE
Disclaimer: The above does not constitute as investment advice. Do note that trading cryptocurrencies (or any other financial market) involves substantial risk, and there will be a potential for loss. Your trading results may vary. Please practice the proper risk management to avoid risks of approaching account zeroing and liquidation.