Purpose of this post
I assume that all my readers know what "mooning" is and that it’s the perfect synonym for speculating! However in some cases it's fine to say a coin is about to moon. But when is that time to say something like that with the minimum risk and the highest reward? That's what i want to explain today!
Accumulation in waves
The market always tends to stay at a certain point before going into a next impulse leg. The reason why this happens is because we entered a zone of supply or demand. Coins are being traded from the impatient to the patient and a phase of distribution and accumulation is happening. Now this is just one example of distribution and accumulation because there is another way of spotting an accumulation phase.
As we can see in the image above here price has dropped dramatically! Yet we want to know if the coin is still alive! So the first question you want to ask yourself is; Is it a shitcoin with no value or is it a coin with a good use-case? In my opinion Steemit is a great platform and i use it daily so in my perspective yes! The second question you have to ask yourself is; Is the line completely flat or does it show signs of strength?
If you take a closer look at the chart you can see that price hit 0.00063225 and 0.00099654 and it came back to the major red resistance line, which means there is still volume in the market making it able to make those highs and lows. These are the moments where your risk/reward are the best.
There is always a risk involved that the company could fail and that you lose your money, but in most cases these flat lines with spikes, show there are still whales in the market. It's really a matter of time before it gets back up and the only thing you should be doing is accumulate yourself!
I prefer keeping my articles short with summarized information to overcome you lose your focus! I hope this article was useful!
Best regards,
Sem
