Cardano (ADA) Bottom Out and Potential Buying Opportunity
The Back Ground and Psychological Support Zone
ADA has been trading in a bearish cycle since Sep-2021, and at this point, it's rejected from the well-established trend line twice as well as EMA's are still heading downwards and exerting a lot of pressure price, the widening gap is a clear indication of bearish pressure. But the rejection of Feb 24, 2022, and further confirmation open doors towards greater accumulation.
Point:
Pay Attention
The trend line is a vital resistance; once the price breaks above the trend line, it can easily target the 1.90 regions. And 50Day EMA should be falt.
Trading Idea
It should break the trend line wisely and retest the same, on the successful retest and buy can a good idea.
Risk / Reward
Cardano fundamentals are in favor of this idea, and technologies are already aligned, and MA's will be signaling the same soon; the only risk in its way is the trend line, once it's broker, there will be no resistance until $1.20, which is TP1, and then we will see it at TP2 $1.90. While you can place the stop loss below the trading range.
Holding Period
One-quarter minimum from the date of entry. I am expecting this breakout and retest in the next two weeks.
It is not financial advice; always do your research.
Please, feel free to ask your question; write it in the comments below, and I will answer.
ADA has been trading in a bearish cycle since Sep-2021, and at this point, it's rejected from the well-established trend line twice as well as EMA's are still heading downwards and exerting a lot of pressure price, the widening gap is a clear indication of bearish pressure. But the rejection of Feb 24, 2022, and further confirmation open doors towards greater accumulation.
Point:
- Bearish Momentum of Price Fade Out
- It breaks its five days consolidation zone.
- Increase in volume / Trading Activity
- RSI Heading Upwards
- RSI EMA Turn flat.
- MACD Turns Bullish
Pay Attention
The trend line is a vital resistance; once the price breaks above the trend line, it can easily target the 1.90 regions. And 50Day EMA should be falt.
Trading Idea
It should break the trend line wisely and retest the same, on the successful retest and buy can a good idea.
Risk / Reward
Cardano fundamentals are in favor of this idea, and technologies are already aligned, and MA's will be signaling the same soon; the only risk in its way is the trend line, once it's broker, there will be no resistance until $1.20, which is TP1, and then we will see it at TP2 $1.90. While you can place the stop loss below the trading range.
Holding Period
One-quarter minimum from the date of entry. I am expecting this breakout and retest in the next two weeks.
It is not financial advice; always do your research.
Please, feel free to ask your question; write it in the comments below, and I will answer.
Comment:
It seems that ADA stuck into the a tight range but it's retreating a little bit to make it's next move, In coming days it might test 100D EMA and then break above towards 1.60 which is second target in this rally and it's ultimate target is 1.90.
