The following timely and actionable crypto trading commentary was originally published in the August 23 issue of Morpheus Crypto Report.
We start with a quick chart walk-through three top swing trade setups to add to your watchlist now, then share a quick update on our current positions in the Model Portfolio.
If you like what you see, you may request a free trial membership until September 1, 2021 by emailing “TRIAL” to [email protected].
Feel free to drop us any questions or feedback by leaving a comment at the end of this post.
Quant ($QNT)
Quant ($QNT), the largest position and biggest gainer currently in our Model Portfolio, remains one of the best-looking charts in the market:
Notice how cleanly $QNT has been trending higher for the past several months.
$QNT recently rallied to new all-time highs after the 10 and 20-day moving averages converged to provide support on August 17.
Now, $QNT is consolidating near its highs, holding above new support of the prior breakout level.
In addition to a great-looking chart, we are also quite bullish on the fundamental, long-term growth story of Quant.
Do a bit of your own research on the project and you too may come to the same conclusion that $QNT deserves a spot in your long-term portfolio.
HERE is a YouTube video that does a great job of explaining the Quant story (a bit long, but worth a watch).
Is it time for DeFi to shine again?
The DeFi (decentralized finance) sector has been consolidating for the past several weeks, but is starting to show signs of relative strength.
We are anticipating a rotation back into DeFi in the next phase of the bull run, and are now targeting both $COMP and $MLN for potential buy entry.
Enzyme Finance ($MLN)
Enyzme Finance ($MLN) has been forming a long consolidation pattern after pulling back from the highs of a big rally a few weeks ago.
$MLN has broken out above short-term resistance of its downtrend line, and we are now stalking it for potential buy entry above the high of its recent range:
Loopring ($LRC)
Loopring ($LRC) was a huge mover last week, exploding more than 40% higher on August 2.
With such a strong move, $LRC may need a bit of time to digest its recent gains.
However, Loopring is already on a pullback, as the 10-MA on the 4-hour chart rising up to provide short-term support.
Rather than listing a pre-set buy price in the Watchlist, we prefer to monitor the price action in the coming days to wait for a low-risk buy entry based on the price action.
As always, we will post an Intraday Trade Alert in the chatroom with exact entry and stop prices if $LRC meets our criteria for buy entry:
Crypto Commentary
Ethereum now poised for a potential breakout above the highs of its range
Bitcoin ($BTC) and Ethereum ($ETH), as proxies for the overall health of the market, continue to exhibit healthy price action.
Ethereum led the way higher on the initial rally off the July lows, then momentum shifted to a bit of relative strength in Bitcoin during the multi-week consolidation.
However, as of the past two days, $ETH is again starting to show signs of leadership and relative strength.
While Bitcoin faded back below the 50k level earlier today (August 23), Ethereum held in a range near its recent highs.
On the daily chart below, notice that $ETH is now poised for a breakout above the high of its 2-week consolidation and resumption of its uptrend:
Model Portfolio Report Card
Closed Trades
The altcoin market continued to perform well last week, enabling us to score wins on 6 of 8 closed trades and a total weekly Model Portfolio gain of +6.6%.
We locked in a +31% gain on another $ADA trade, +23% gain on $MATIC, and +8% gains on both $ETH and $WAVES swing trades.
There were two minor gains (less than +1%) in $OGN and $KAVA, along with two losses of less than 5% on both $COMP and $YFI.
Open Positions
Six of seven open positions are currently showing a profit, led by solid gains of approx. +29% in $TEL, +22% in $ACH, and +17% in $QNT.
Announcements: Crypto Trading Webinar
We are currently planning an upcoming Crypto Trading Fundamentals webinar to be held in late September (further details to be posted here on the blog).
The webinar is designed to quickly get a stock trader up to speed with all the important things to know when trading crypto.
Topics will include choosing a crypto exchange, building a crypto watchlist, and many other nuances to help you efficiently and properly get your crypto trading operations up to full speed.
If there any specific topics you would like to see, drop us a line in the comments below.
Finally, we are off to a fantastic start with a net gain of approx. +10% in the MAST (Morpheus Alpha Swing Trading) crypto fund, which we opened for select investors two weeks ago.
We still have a few openings left in MAST crypto fund.
Please e-mail [email protected] to request your free trial membership to Morpheus Crypto Pro until September 1, 2021 or for further details on MAST.
As always, be sure to honor your stops and trade what you see, not what you think!
Deron Wagner, PhD (h.c.)
Founder @ Morpheus Trading Group
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