Michaël van de Poppe — CEO and founder of MN Trading — teaches three trading concepts that can be applied to low market cap cryptocurrencies , as a particular #altcoin shows “momentum” with a “massive breakout” on its price chart.
In a post made on September 8, a professional crypto trader explained that the “small-cap” coin made a strong #bullish move , breaking out of past price resistance for a pump that reached three times the price (+200%).
Interestingly, van de Poppe used the Perpetual Protocol ( PERP ) token as an example of a recent massive breakout that took its price from $0.40 on September 5, to $1.20 on September 7. PERP was trading at $1.09, at press time.
Perpetual Tokens are also used by traders to establish three trading concepts that can be applied to other altcoins showing similar patterns, as Michaël emphasized that the current price for this particular token could reach a local high, but “that is something we don't do. Don't know."
However, cryptocurrencies with larger market caps – including Bitcoin ( BTC ) – do not follow this huge momentum for small-cap cryptocurrencies , as in the analysis.
3 trading concepts for trading small cap altcoins
Michaël van de Poppe explains the following three trading concepts that can be observed during this “upward run”. He believes it is a simple concept and trading pattern that will repeat “on more charts in the coming weeks.”
Breakout aggressive play , which you can find on the charts as a potential opportunity to trade and take a position. Breakouts often cause 10-20% moves here.
S/R Reverses those breakouts , which are also marked in green as potential squares and can result in a 10-20% bounce play as well.
A breakdown play , which is more difficult because the trend is still pointing upwards (in this case the short at $1.12 will be reached, but most likely the TP will not be reached because the $1.12 reclaim is invalid).
— Michaël van de Poppe (@CryptoMichNL )
Basically, the CEO and founder of MN Trading believes that there is an opportunity to gain between 10 to 20% when opening a long position in an altcoin before it breaks through price resistance — which he says is very likely at such a small cap. not broken yet.
Once the first concept is executed, traders should look for this old resistance to convert into current price support, which also creates new opportunities for 10 to 20% profits with possible upside.
In this context, the last concept to pay attention to is the breakdown, when this new support is not respected, but the price trend continues to point upwards. This can create an opportunity for traders to open a short position, but with caution, as the price target may not be reached if this is a false breakout.
