ADA → Cardano Coming Down! Where Will We Land? Let's Answer.Cardano had a fantastic measured move event from the breakout point on October 23rd, a move that I overlooked in my last couple of analysis! The price shot up from $0.27 to $0.41, pulling back into a bull flag, then ripping up from $0.41 to $0.62! Now that the move is complete, where do we go from here?
How do we trade this? 🤔
The measured move is usually followed by a trading range, which can turn into a continuation pattern over time *OR* a reversal to the downside. We need more price action to determine the next moves. Right now we have a market that is burning hot on the upside, and RSI that is over 70.00, and the massive bear candle from last night that showed the bulls taking profits at this key level.
Right now, we need more price action to justify an entry. Given the current datapoints, we should expect some sideways price action until the 30EMA catches up, but its likely we'll fall down toward the previous Resistance Zone that may not act as support. The test of that zone will give us strong evidence as to the next moves for Cardano. We need to see a strong bull signal and confirmation bar to justify a long. An RSI level of 50.00 or below would be ideal as well.
Until then, it's reasonable to stay on the sidelines until more price action plays out.
💡 Trade Idea 💡
Long Entry: 0.482
🟥 Stop Loss: $0.437
✅ Take Profit: $0.572
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Measured Move Complete! Trading Range or Reversal Likely.
2. Previous Resistance Needs to be tested as Support.
3. If Support Holds, Could go up for another test of the Previous High.
4. If Support Fails, Expected Lower Lows around 200EMA.
5. RSI at 70.00, Above Moving Average. Bias for Short-Term Short.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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