‘To the Moon’ Watchlist: July 31, 2022

Howdy on a Sunday. It’s Matt here.

Have you ever heard the saying “good things come to those who wait”?

In trading, and in life, it’s the plain and simple truth. “Rome wasn’t built in a day” — there’s another one!

Successful traders make the most money by waiting for the RIGHT PLAYS, not by jumping into random activity. 

That’s what my mentor Tim Sykes drilled into my head early on and now I’m trying to do you a favor by doing the same for you. 

So here’s the good news … besides the fact that Bitcoin (BTC) finally broke out of its dramatic downward cycle, the Nasdaq put in a killer week… 

If you trade crypto, you have to think of it as a technology stock, not a currency. It’s a risky asset looking to change the future. 

Here are the game-changing coins I’m watching this week!

Cardano (ADA)

Cardano is my top watch this week. What do I see in it? The fact that it declined so steeply and followed up that action by forming a very strong base. 

The steeper the decline, the stronger the potential for a bounce, especially when it’s had time to consolidate sideways for a while.

That kind of action gives more traders time to notice it, build interest in it, and ultimately, jump in when the moment strikes. 

The chart keeps tightening up, strengthening its bullish pennant pattern. I’m still waiting for strong confirmation of the trend reversal to come in though. 

I need to see significant volume on a move over $0.55 for a potential 100% move to $1+. I’d still keep my risk low at $0.10. War Room members will get exact alerts when I enter and exit this trade. 

Decentraland (MANA)

Decentraland is defying its typical correlation with Meta Platforms Inc. (NASDAQ: META). As I mentioned last week, MANA is tied to the metaverse. 

However, its price action has been holding up pretty well. It’s touched $1.02 a few times … the first time being last weekend and the second time being at the end of this week. 

So, it has to break past $1.05 now to prove itself. Remember that we’re looking for a potential run up to $1.50, and even possibly $2, with a risk level of $0.75. 

I’d play it safe though because META has taken a beating in the press lately. It walked back potential changes to Instagram after facing backlash. And it suffered its first-ever revenue drop. 

Remember to always look for price action, volume, and a convincing catalyst before you enter any trade. 

ApeCoin (APE)

ApeCoin broke past $6.75 as we were looking for last week, but it couldn’t sustain the momentum above the $7.20 threshold. 

Personally, I think the previous $4-$6 bounce came too soon and too abruptly. I like to see a slower, more gradual trend to the upside. That type of movement tends to hold gains better. 

When you get a quick 50% move like that, it sets expectations higher for incoming traders. And then they get impatient of the next leg up doesn’t move as quickly. 

That could be why it didn’t sustain its latest breakout. That being said, this is clearly a former runner and it’s known to make wild swings on meaningful news catalysts. 

A great press release could bring traders back to it for a push to $7.50, $8, or even $9. I’d wait for a breakout past $7.25 or $7.50, now that it’s touched the $7.20 key level, for a move to $8 or $9. Risk on $7.

Conclusion

Trading is a waiting game. What are you waiting for? The best opportunities! The more knowledge and the more discipline you have, the better your execution will be. 

And right now is one of the best times in history to execute on potentially massive opportunities. 

My mentor, Tim Sykes, put together a game plan with the potential to help newbie traders make up to 10x gains on their accounts. Found out how here.