Can DATA (DTA) Pull Off Another 600% Moonshot?

DATA Highlights

• DATA has previously increased by 600% in a single day.
• The price has been increasing since Jan 29.
• A golden cross has transpired.
• There is resistance at 230 satoshis.
• There is support at 180 satoshis.

Cryptocurrency and stock trader @IncomeSharks outlined a DATA price chart stating that the price had increased by more than 600% in December 2019. In addition, there is a long signal for the coin, making it a very low-risk high-reward play if the price acts in a similar manner.

$DATA pumped 600%+ in December when markets were slow. It just gave a LONG signal on the SuperTrend a few days ago. Look what happened last time we saw this. Talk about a low risk high reward play on this coin. pic.twitter.com/HEkQa2A0Ln

— IncomeSharks (@IncomeSharks) February 13, 2020

DTA Previous Increase

On Dec 25, 2019, the DATA price reached a high of 1,755 satoshis. As mentioned in the tweet, this was roughly a 600% increase in a single day. While this was indeed a massive price increase, the higher levels could not be sustained and DATA created an immense upper wick instead and pulled back. Since then, the price has not come close to reaching these levels. On Jan 29, the DATA price made a low of 145 satoshis, completing a full retracement relative to the pre-breakout price level. This low also served to validate the 200-day moving average (MA). On Feb 13, the DATA price created a bullish engulfing candlestick, confirming the bounce and moving above the 50-day MA. These MAs have previously made a bullish cross, indicating that the price has begun an upward trend.

Potential For Increase

The DATA price has currently reached a resistance area found at 230 satoshis. The 180 satoshi level, which previously acted as resistance, is expected to act as support in the future. So, entering the trade if the price returns to the support area near 180 satoshis would provide the opportunity to place a stop loss below the Jan 19 low of 143 satoshis which would be around 20% below the entry price. The target of 415 satoshis would provide a 125% return, for a risk-reward ratio of nearly 6. While the price has indeed reached an all-time high of 1,755 satoshis, it was only in the form of a very long upper wick. For that reason, it is not being considered in this analysis, even though it would increase the risk-reward considerably. From an entry price of 183 satoshis, an 870% return is possible. To conclude, the DATA price began a strong upward move on Feb 13 and is moving towards the range high. A short-term retracement could occur prior to the price resuming its upward movement.