Hello Traders, Here is my analysis for Cardano (ADA)
When I first started trading, ADA was one of my favorite Cryptos. I didn't understand anything about TA but I still invested heavily out of love for the planned projects and faith that ADA would make me rich one day due to buying at a discounted rate. After several months I lost a substantial portion of my portfolio and learned the lesson on investing out of emotion vs logic. It's a shame to see it perform so poorly...
So where is ADA headed.
- ADA is similar to FTM in the sense that it has been on a constant downtrend for months on end. The main difference being that despite the majority of the market reaching new ATH's in November, ADA peaked in September 2021 and has been trending down since.
- Price recently broke the last major support level between about $0.80 all the way down to $0.40.
*So what does this mean? - It means that there is nothing to stop ADA from trending straight down to $0.40 basically.
- I don't doubt that ADA will have a few small rallies on the way down, but the probabilities of it continuing lower down to $0.40 are very high compared to the probabilities of it reversing and becoming Bullish which are very low.
- Even if ADA was to have a rally, I would not consider it Bullish until it broken the descending trend line resistance.
If ADA was to have a rally right now that resistance falls at about $1, so if there was a correction rally that would be your max upside most likely.
*** ADA Next Target = $0.40
When will it reverse and become Bullish?
- This is very hard to answer, typically we can compare other alts to BTC and say "well if BTC reverses at X then this alt should reverse at it's X as well."
- ADA is different. Like I said when we compare the charts, ADA has been massively underperforming compared to the majority of cryptos.
- If I had to guess I would say the lowest it would need to go before reversing would at the very least $0.40. And to be honest it's possible ADA goes even lower especially since we know BTC might not bottom until $20K at least.
- If I was a buyer of ADA for the long term, at this point I wouldn't consider buying until ADA was below $0.40 at a minimum maybe even lower than that.
***Also you can clearly see the Major Descending Trend Line starting at the September high and acting as Major Resistance during this entire downtrend. The correct way to play a move on ADA would be to wait for the Trend Line to be broken to the upside and enter a position after a confirmed re-test of that level.
***So these are your 2 Signals to watch for before considering buying ADA***
1) Price to drop below $0.40
2)A confirmed breakout of the Descending Trend Line Resistance.
If you have any question regarding this please let me know. You can always message or comment any chart requests or questions.
Thanks everyone and best of luck trading!
When I first started trading, ADA was one of my favorite Cryptos. I didn't understand anything about TA but I still invested heavily out of love for the planned projects and faith that ADA would make me rich one day due to buying at a discounted rate. After several months I lost a substantial portion of my portfolio and learned the lesson on investing out of emotion vs logic. It's a shame to see it perform so poorly...
So where is ADA headed.
- ADA is similar to FTM in the sense that it has been on a constant downtrend for months on end. The main difference being that despite the majority of the market reaching new ATH's in November, ADA peaked in September 2021 and has been trending down since.
- Price recently broke the last major support level between about $0.80 all the way down to $0.40.
*So what does this mean? - It means that there is nothing to stop ADA from trending straight down to $0.40 basically.
- I don't doubt that ADA will have a few small rallies on the way down, but the probabilities of it continuing lower down to $0.40 are very high compared to the probabilities of it reversing and becoming Bullish which are very low.
- Even if ADA was to have a rally, I would not consider it Bullish until it broken the descending trend line resistance.
If ADA was to have a rally right now that resistance falls at about $1, so if there was a correction rally that would be your max upside most likely.
*** ADA Next Target = $0.40
When will it reverse and become Bullish?
- This is very hard to answer, typically we can compare other alts to BTC and say "well if BTC reverses at X then this alt should reverse at it's X as well."
- ADA is different. Like I said when we compare the charts, ADA has been massively underperforming compared to the majority of cryptos.
- If I had to guess I would say the lowest it would need to go before reversing would at the very least $0.40. And to be honest it's possible ADA goes even lower especially since we know BTC might not bottom until $20K at least.
- If I was a buyer of ADA for the long term, at this point I wouldn't consider buying until ADA was below $0.40 at a minimum maybe even lower than that.
***Also you can clearly see the Major Descending Trend Line starting at the September high and acting as Major Resistance during this entire downtrend. The correct way to play a move on ADA would be to wait for the Trend Line to be broken to the upside and enter a position after a confirmed re-test of that level.
***So these are your 2 Signals to watch for before considering buying ADA***
1) Price to drop below $0.40
2)A confirmed breakout of the Descending Trend Line Resistance.
If you have any question regarding this please let me know. You can always message or comment any chart requests or questions.
Thanks everyone and best of luck trading!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.