Some may unfamiliar with what Dollar-Cost Averaging is. Basically, Dollar-Cost averaging is simply defining an amount of money you are willing to spend on a regular interval. Let’s say you are going to budget $200 every month to buy Bitcoin and you’re going to buy Bitcoin on the first Friday of every month. Some months you will buy very little Bitcoin with your $200. And some months you will end up purchasing a lot of Bitcoin with your $200. For me – I like to find the actual discount price and wait for a move to that level to enter. Some of those levels we’ll discover may be close than we think.
0x (ZRX)
Above: 0x (ZRXUSD)
0x (ZRX), like many cryptocurrencies during Tuesday’s flash crash, hit one of its DCA (Dollar-Cost Average) levels. For 0x I’ve identified two primary zones as long opportunities. The first the weekly Tenkan-Sen at $0.9325. However, when you look at the RSI and the Composite Index, there is some very real threat to further downside pressure. This is especially true if this weekly candlestick closes below the Cloud on the weekly chart. The second DCA level is at the 2021 VPOC (Volume Point-Of-Control) at $0.56. I don’t see that level being very likely – but I certainly would not be unhappy if that kind of a discount arrived!
DCA 1: $0.9325
DCA2: $0.56
Zilliqa (ZIL)
Above: Zilliqa (ZILUSD)
Zilliqa’s DCA levels are based on the very same conditions as 0x’s. However, the proximity of the Zilliqa’s weekly Tenkan-Sen is much close to the Cloud and the current weekly close. The level most likely to hold as strong support give the current price behavior is the 2021 VPOC at $0.0725.
DCA 1: $0.0725
EOS (EOS)
Above: EOS (EOSUSD)
EOS has a very bearish looking bearish engulfing candlestick developing on its weekly chart. Upon further inspection it looks even more bearish when you consider that a head-and-shoulders pattern is developing on its chart. The DCA levels on EOS are a little more tricky. The first DCA level I spot is at $3.14, which is the second highest volume node in the 2020 (yes, 2020, not 2021) VPOC. That price level also splits the price range between the weekly Kijun-Sen and Tenkan-Sen where the Chikou Span would be trading if EOS drops to that price range. The second DCA is the 2020 (again, yes, 2020) VPOC at $2.59. The 2020 VPOC has significantly more volume traded than the 2021 VPOC.
DCA 1: $3.14
DCA 2: $2.50
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