Cryptocurrency Trade Ideas with Point and Figure Analysis
Above: Litecoin (LTCUSD)
Litecoin has two options on its current $1.00/3-box Point and Figure chart – one for both sides of the market. I generally do not like to take double bottom or double top trades unless it confirms a Trap pattern, Fakeout pattern or a Catapult pattern – but give the extremes here its within my risk parameters. The first idea here is a long entry at 154 with a stop loss at 151 and a profit target at 161. On the short side of the market I’m looking at a sell stop at 145, stop loss at 149 and a profit target at 130. Depending on how bearish the market remains in the risk-on space, Litecoin could continue south with some alarming speed. Watch out for any whipsaws in price action.
Above: ChainLink (LINKUSD)
Operating with the same view as Litecoin in regards to the extremes being traded, ChainLink also has two trade ideas – one for bulls and one for bears. For bulls, the long idea a buy stop at 22.50 with a stop lsos at 21.75. The profit target on the long is at 25.25, but it should be watched as there is some congestion at that level. On the short side, the idea is a sell stop @ 20.75 with a stop at 21.75 and a profit target near a new multi-month low at 17.25. I may consider entering into some longs around that $17 to $18 range.
Above: Solana (SOLUSD)
Out of all the pump and dumps in the DeFi and NFT space, none holds as many bag holders and blind cult fanatics as Solana. I’m not saying Solana is bad, but Solana’s fan club is sort of like Doge’s or XRP’s: frothing at the mouth cult members who are blind to any direction but up! Saying that I do see some upside potential here (I was short from 195 to 120). A buy stop entry at 140 would qualify as an early entry on a Pole Pattern, but the stop loss at the low of current O-column at $120. The profit target would be at the test of the dominant bear market trend angle at $185.