Aeternity (AE) and its expected break out

On 14th March an article titled: “Aeternity had announced a second round of Starfleet accelerator” had been discovered by Daneel. From the article it’s possible to find out that Aeternity is a decentralized smart contract platform, which selected fourteen projects to be supported with cash, mentorship, token economics, and other assistance. The start-ups will have to go through two rounds. The first one to select the competing teams, and the second one to decide on redistribution of the funds. In this intense four-week training program, those who show the best performance will be able to secure up to $100,000 in funding. Seeing that successful start-ups can secure funding despite the current bear market shows that interest in the blockchain hasn’t gone away and that investors expect a greater adoption of this technology in the future. Since Aeternity is a relatively new decentralized project with active developers and soon-expected second main net release, it makes for a perfect candidate for an analysis. As we can see, the volume has been enormous and it’s still growing. Even at the all time high the volume hadn’t reached such levels. If you look at the graph, you can see that the price is currently trending in the ascending triangle. While considering the volume and the price pattern, we can expect price to break out of this pattern in the positive direction. The green lines in the graph show two possible sell targets. The purpose of the first one is to grab some profits just in case the momentum is not strong enough for price to reach the second target. If there is enough momentum, it is very likely that the second target will be reached. At that point it’s better to sell, even though the price might climb a little bit higher. After all a temporarily halt is expected on these levels and it’s always better to re-enter the position later than to miss the chance to grab the profits. Like with any analysis, it’s also important to prepare a stop loss in case the price breaks out in the opposite direction. For this purpose, relate to the red line. In case you have time to day trade, we would recommend closing the position once the 4 hour candle closes below the latest higher low or below the bottom line of the pattern.