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The Augur / US Dollar (REP / USD) pair managed to reach $ 95.00 in May 2018, but has since been declining. Downside conditions pushed the pair to a minimum of $ 27,301 on August 4th. Having lost more than 70% of its value in two months, many investors are likely to have forgotten about Augur. However, recent activity shows that the bulls are showing.
Technical analysis shows that REP / USD is positioning to eliminate two inversion schemes: a falling wedge and an ascending triangle. The key level to take is $ 30.00. Technical indicators suggest that a breakout is likely.
First of all, we see that the RSI creates a triple fund to support 34 more is flashing a bullish divergence. This shows that the pair is gaining bullish momentum.
More importantly, there are extreme volume peaks in the market. REP / USD did not print this volume level from May 2018.
The strategy consists of buying the breakout at $ 30 as long as the market generates a volume of 10,000 Augur units. We expect heavy sales at $ 30. Therefore, the market needs buyers to absorb sales pressure.
Once REP / USD takes $ 30, it can quickly rise to our goal of $ 45.
The process may take less than a month.
Daily Chart of Augur / US Dollar on Kraken
At the time of writing, the Augur / US Dollar pair is trading at $ 28.78 on Kraken .
Strategy Summary
Buy: Breakout at $ 30 as long as the volume of 10,000 Augur units is reached.
Target: $ 45
Stop: $ 28.50 after the breakout.
Disclaimer: the writer owns bitcoins, Ethereum and other cryptocurrencies. It holds investment positions in the currencies, but does not carry out short-term or day trading activities.
Featured image courtesy of Shutterstock.
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