Howdy, traders. It’s Matt here.
Happy Sunday! Sunday brings most traders closer to Money Monday. If you’re trading small caps, be sure to read Bryce’s watchlist before tomorrow!
He found a small-cap meme stonk that looks like it’s on the verge of a short squeeze…
Meanwhile, in my neck of the trading woods … I’m still hanging out in Crypto Land! Any day, any time, I’ve got coin charts on my mind.
They’ve been setting up and trading sideways for a while, making nice long wedges. I’m just waiting patiently for them to finally pop!
Let’s look at the three cryptocurrencies I’m watching right now…
Ethereum (ETH)
Ethereum just took a major step in its quest to become more energy efficient. It completed a ‘dress rehearsal’ to transition from a proof-of-work method to a proof-of-stake one.
It’s been a long time coming and there’s still a ways to go before it’s finalized. But it’s a step in the right direction.
Ethereum is already one of the top two cryptocurrencies and many NFT projects rely on it for their platform. But it came under fire recently for the exorbitant gas fees incurred during the Bored Ape Yacht Club’s (BAYC) Otherdeeds sale.
It’s touched support around $1,800 several times now. I’m waiting to see it break the sideways trend and make a 10-15% move. If it does, I expect it to retrace its moves before a larger breakout to the upside of 50%.
Cardano (ADA)
Cardano, like other altcoins, depends on Bitcoin (BTC) and Ethereum (ETH) to succeed. If the two big coins move favorably, altcoins tend to follow soon after.
It’s holding up at the $0.50 key level well, making micro moves to the upside. I’m looking for a clear push up so I can execute the strategy I shared last week…
Watch This BEFORE 9:30AM!
Have you seen what Tim Bohen has been up to EVERY morning between 9:29 and 9:30am?
If not, click here now because he’s getting ready to do it again.
Do NOT wait to see this.
My goal is to risk $0.10 (about 20%) because I think it could be a 100% mover into the $1 range.
A 1-to-5 risk-to-reward ratio is definitely a trade worth taking. The exact timing and alerts for this trade, and trades like it, get sent to my students in the Crypto War Room.
Solana (SOL)
SOL is another altcoin that’s dependent on BTC and ETH to succeed. And, to be honest, both of those leading coins are holding precariously close to their support levels. If they break support to the downside, altcoins won’t be in play.
That said, SOL’s more recent downtrend line is less steep than it was previously. This means that selling pressure from traders is going down.
Once sellers get exhausted, there’s likely to be a good pop when buyers rush in to replace them.
If it can pop and consolidate near $50, I’ll buy it at that point. From there, if it holds up, there could be room for another 50% upside move.
Conclusion
Cryptocurrencies are on the brink of major moves right now. The only question is, will they go up or down? Either way, there will be plays to make along the way if you understand how they work.
I started the Crypto War Room as a place to help traders get a handle on crypto. Trading small caps is a nice foundation but sometimes it pays to try something new.
The war room is the place to find up-to-the-minute crypto alerts, webinars, tutorials, and insights from a veteran trader — moi. I’ll keep you posted on the most relevant news impacting the crypto markets and how to trade based on them. Join me in the War Room to get started!