Identifying Profit Opportunities in Low Market-Cap Cryptocurrencies
If youโre interested in trading low market-cap digitalย currencies, there are 3 key concepts that can help you spot probable profit opportunities. According to Michaรซl van de Poppe, CEO and founder of MN Trading, certain altcoins are asย ofย now experiencing strong positiveย trend movements, resulting in substantial breakouts on their price charts.
Forย instance, van de Poppe outlines the token Perpetual Protocol (PERP), which saw itsย value surge from $0.40 to $1.20 within a couple of days. Theย present price of PERP stands at $1.09.
1. Breakout Aggressive Plays
One trading concept involves identifying breakout opportunities on the charts. These breakouts often lead to wholeย lotย of price movements of 10-20%.
2. S/R Flips of Breakouts
Another concept concentratesย on the support and resistance flips that occur after a breakout. These flips can create opportunities for 10-20% profits as the previous resistance turns into current price support.
3. Breakdown Plays
The third concept involves breakdown plays, which can be more challenging. In this case, the trend remains positiveย trend, but short positions can be taken if thereย is a breakdown below a certain price level. Nonetheless, caution is advised as these breakdowns may turnย out to be fake.
Itโs criticalย to note that these concepts are not foolproof and investing in digitalย currencies always carries a level of risk. Therefore, itโs critical to conduct thorough research and exercise caution when making trading decisions.
Hot Take
The cryptocurrency market is constantly evolving, and itโs essential to stay notified and adapt your strategies accordingly. By understanding these trading concepts and analyzing market trends, you can potentially capitalize on profitable opportunities in low market-cap altcoins.
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