For the most part, traditional markets have been a fat mess for the better part of this year.
That’s why crypto has caught our attention so much in recent months: It’s stood out as a beacon of alpha.
Whether or not you’ve been invested in crypto, chances are you’ve probably heard all the chatter about Solana – and for good reason. It gained a whopping 700% from its July lows in just under two months, making it one of our best trades of the year.
But, when you dive down the cap scale, there are so many opportunities shaping out just like how Solana was a few months ago.
Harmony is one of them:
We’ve been long Harmony on this breakout above 20 cents, and so far it’s treated us very well, with prices are running up against our first upside target of 33 cents.
It seems to have a great fundamental use case, bridging together a variety of smart contract platforms and essentially making them more scalable in the process.
But, at the end of the day, we’re technicians.
First, we buy the breakout; then, we dive into what they do (mostly just for fun).
Particularly in crypto, simply participating with the trend is far more powerful than understanding all the intricacies of what these various protocols are trying to achieve.
If you bought the breakout in Solana earlier in the year, you got paid exactly the same at the end as the guy who “knows” all the fundamentals.
Price always comes first, and, in this case, Harmony has been one of the strongest names in all of crypto in recent months.
Only price pays.
So, how are we approaching Harmony moving forward?
Particularly with the elevated near-term risks in the entire crypto market right now, this is a good spot to take some profits off the table and see how the market responds to this extension target. Thirty-four cents seems to be the new floor – we only want to be long Harmony above there for now.
But we want to emphasize that when Bitcoin ultimately resolves higher above 65,000 and this bull market really begins heating up, Harmony is likely to be a great place to maintain a long-term spot position moving into 2022.
Crypto members can download this week’s chartbook below:Lost Password?