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Adabullish

ADA → Cardano Heading for $0.65!? In a Key Support Zone.ADA completed its 2-legged pullback per my previous analysis and even overshot the key support zone to Push #1 support at $0.41. Is this an opportune time to long? Previous Analysis: How do we trade this?  🤔 Cardano found support at Push #1 support from the previous bull trend around $0.40 and has rebounded to the Daily 200EMA. It's reasonable to expect a pullback from the 200EMA to the $0.45-$0.47 area in the Support Zone. We need a strong bull candle closing on or near its high followed by a confirmation candle to support the idea of longing ADA. Even with such price action, we should be cautious given Bitcoins likely pullback from its recent all-time high and halving period. That being said, it's reasonable to think Cardano will have more upside before it comes down and with the signal and confirmation bar off of the Support Zone, it's reasonable to enter a long position toward the $0.65 range. Take half profits at 1:1 Risk/Reward at $0.5635, move the stop loss up to the entry price, then swing the latter half of the position to Take Profit #2 target of $0.65. The likelihood of hitting $0.65 is less than ideal, but it's worth holding that second take profit target until the price action gives us a reason to exit the trade. This analysis is in alignment with my recent ADA Lifetime Analysis as seen here: 💡  Trade Idea  💡 Long Entry: $0.4767 🟥 Stop Loss: $0.3900 ✅ Take Profit #1: $0.5635 ✅ Take Profit #2: $0.6500 ⚖️ Risk/Reward Ratio: 1:2 🔑  Key Takeaways  🔑 1. 2-Legged pullback completed at Support Zone. 2. Double Bottom pattern at Support Zone 3. Strong bull candle to Daily 200EMA, expect a pullback to the Support Zone. 4. Look for a strong signal candle closing on or near its high with a confirmation candle following. 5. RSI is at 41.00 and above the Moving Average, supporting the idea of a long position. 💰  Trading Tip  💰 It's reasonable to take half profits at the first resistance target in a long trade or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worrying about losing money, which helps improve trading psychology and the equity in your account. ⚠️  Risk Warning!  ⚠️ Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk! Like 👍 and Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
KRAKEN:ADAUSDLong
by TraderEngineering
8
ADA → Cardano to $0.40? or $1.40? Get your Longs Ready!ADA completed its 230% price increase since October 2023 and now appears to be finding some resistance. Should we short here? How do we trade this?  🤔 Shorting is not ideal on the Daily timeframe. Since October 2023, ADA has put in three legs in a bull trend, a double-top reversal pattern that has come off of an ascending wedge (bearish pattern). We're now finding resistance below the Daily 30EMA with a gap down to the Daily 200EMA. This analysis screams a two-legged pullback to the 200EMA, likely in alignment with the Bitcoin halving that's about to happen in April 2024. Short on the 1HR timeframe, but get your equity ready for a long position when ADA comes into contact with the $0.53-$0.57 price area. Look for a strong bull candle closing on or near its high off of the Daily 200EMA, this is our signal bar and a reasonable one to enter on with a 1:2 Risk/Reward Ratio, aiming for a conservative target of $0.775. A confirmation bar should take us somewhere in the $0.60-$0.65 range. If we see this, given the crypto market's similar sentiment after the halving, it's reasonable to enter at a 1:2 risk reward aiming for the $1.20 area. It's reasonable to take half profits at 1:1 Risk/Reward and swing the latter half of your position to 1:2, 1:3, or even 1:4 Risk/Reward on this timeframe, depending on how the price action plays out. This analysis is in alignment with my recent ADA Lifetime Analysis as seen here: 💡 Trade Idea 💡 Long Entry: $0.55 🟥 Stop Loss: $0.4375 ✅ Take Profit #1: $0.663 ✅ Take Profit #2: $0.775 ⚖️ Risk/Reward Ratio: 1:2 🔑 Key Takeaways 🔑 1. Three legs in a bull trend 2. Double top reversal pattern which has come off of an ascending wedge (bearish pattern) 3. Finding resistance below the Daily 30EMA with a gap down to the Daily 200EMA. 4. Look for a 2-legged pullback to the 200EMA, likely in alignment with the Bitcoin halving that's about to happen in April 2024. 5. RSI is at 48.00 and Above the Moving Average, supporting the idea of a pullback to the 30.00 area below the Moving Average. 💰 Trading Tip 💰 It's reasonable to take half profits at the first resistance target in a long trade or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worrying about losing money, which helps improve trading psychology and the equity in your account. ⚠️ Risk Warning! ⚠️ Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk! Like 👍 and Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
KRAKEN:ADAUSDLong
by TraderEngineering
ADA → Cardano Lifetime Analysis Shows $7.50 High!? Let's Answer.ADA has established lifetime trend lines following the conclusion of the 2022/2023 bear run. The bear run low at $0.22, provides us a connecting dot to the 2020 bear run low of $0.018, allowing us to establish a Lifetime Support line. Likewise, the conclusion of the 2021 bull run provided us with a connecting dot for a Lifetime Resistance line. Now that we established a trend, how heavily can we rely on those lines? What about other areas of support and resistance? Will the altcoin market respond to market forces and reach new highs? How do we trade this? 🤔 Let's answer these questions in order and expand upon them: 1. How heavily can we rely on these trend lines? As heavily as any other established trend line. While it's important to remember that altcoin markets are more volatile than higher volume markets such as Bitcoin or especially Forex, these support and resistance areas *are* the data. Our analysis frames the playing field such that we can apply trade management strategies to gain a profit, which means any trade we should consider these price areas to be the boundaries of our trades. 2. What about other areas of support and resistance? Lifetime Support and Resistance frame our macro trend, but we need to zoom into the EMA ribbons and previous areas of support and resistance. After the conclusion of the 2022/2023 bear run, ADA broke through the 30EMA and 200EMA ribbons and established support on both. In my analysis rubric, the 30EMA and 200EMA ribbons are immensely important in determining what price areas are respected by a security. Currently, ADA is following the movements of Bitcoin and the crypto market as a whole. My Bitcoin Lifetime Analysis explains why I believe Bitcoin needs a strong pullback before reaching new all-time highs: If Bitcoin fails to find a new all-time high here, ADA will likely stall and fall with it. The degree to which it falls is up for debate, but I would argue we will see the price fall to $0.50 (Weekly 200EMA) at a minimum, with a worst-case being $0.40 at Lifetime Support, maybe a wick into the $0.35 range. This will likely come in the form of a two-legged pullback on the Weekly chart. Once that pullback concludes alongside Bitcoin, we should see another attempt to find new highs with Bitcoin. If ADA and the altcoin market are going to find strong upward momentum, it will be after Bitcoin and Ethereum find new all-time highs, generating excitement and volume. I'll be honest, what happens with the price from here is difficult to estimate. I believe what is closer to a worst-case scenario is ADA stalls around the 2021 Resistance Zone at the $1.50 range. A best-case scenario is it reaches near the Lifetime Resistance at $7.50. Somewhere in the middle, reaches the previous all-time high of $3.10. We need to see the market reaction to the pullback and Bitcoin reaching new all-time highs to remotely begin estimating where ADA will land. 3. Will the altcoin market respond to market forces and reach new highs There are a variety of arguments for and against the notion that we'll get another "alt season" where the alt market securities find new highs. My position on this is that we don't have nearly enough evidence to conclude that the alt market will be strong during this next bull run. Here are some key points regarding what we do have: 1. Price Action is truth and we have price action data. Bitcoin has had a 300% increase in price since the 2023 $15,500 low, ADA has had a 200% increase in that same timeframe. 2. Volume into BTC and ETH proportionally is greater than the volume into the alt coin market. 3. ADA is respecting support and resistance areas and responding to macro crypto market sentiment. 4. The altcoin market is bloated, but the top 20 coins are more insulated from that bloat. 5. The RSI, a weak indicator on its own, shows us that the market is burning hot and needs a cooling-off period. This supports my other data points. So where does that leave ADA? As previously stated, we have some key events that need to play out before we can have any confidence in where ADA ends up by 2025. Those include the pullback I believe is coming, followed by Bitcoin and Ethereum finding new highs. Once we hit those marks, we can start talking about $1.50, $3.00, and $7.50 price targets. The Trade That being said, we can still construct a reasonable trade based on the data we have. There are two ways to play this chart, wait for the pullback and start buying around $0.50, or start buying now and fade your position in either direction. Personally, I'm going to put weight on my overall crypto analysis and wait for the market to pullback. My ideal buy for ADA would be at $0.57 after we see an established bounce off of the EMA ribbons. I would place a stop loss below the previous bear trend low at $0.18. My take profit targets would be as follows: Take Profit #1 : $0.96. For two reasons, this is a 1:1 Risk/Reward ratio, so if I sell half of my position and move my stop loss to my entry price, profits are locked in, and I can swing the second half of my position. The second reason is there is a minor resistance zone at $1.00 on top of $1.00 being a psychological resistance price. $0.96 allows us to sell before that resistance is met. Take Profit #2 : $1.50. I would sell 25% of my remaining half because this is a major resistance area where a lot of trading happened. This is also about 1:2.5 Risk/Reward, which is reasonable to take more profit. Take Profit #3 : $2.95. Take another 25% of the second half of the position off the table just before the previous all-time high is met. This will be a major resistance area and the likelihood of it breaking is far less than the $1.50 resistance area. This is also a 1:6 Risk/Reward area, absolutely reasonable to take profits this late in the game. Take Profit #4 : $6.85. The final 50% of the second half of my position (25% of my original position), will be taken off the table before we get close to the Lifetime Resistance price of $7.50. $7.00 will be a psychological barrier and close enough to $7.50, where if we hit that price, it will be a very low probability compared to just under $7.00. $6.85 is 1:16 Risk/Reward, a massively successful trade at this stage and completely reasonable to close the entire trade and be very satisfied with the results. 💡 Trade Idea 💡 Long Entry: $0.57 🟥 Stop Loss: $0.18 ✅ Take Profit #1: $0.96 ✅ Take Profit #2: $1.50 ✅ Take Profit #3: $2.95 ✅ Take Profit #4: $6.85 ⚖️ Risk/Reward Ratio: 1:16 🔑 Key Takeaways 🔑 1. Price Action is truth and we have price action data. Bitcoin has had a 300% increase in price since the 2023 $15,500 low, ADA has had a 200% increase in that same timeframe. 2. Volume into BTC and ETH proportionally is greater than the volume into the alt coin market. 3. ADA is respecting support and resistance areas and responding to macro crypto market sentiment. 4. The altcoin market is bloated, but the top 20 coins are more insulated from that bloat. 5. The RSI, a weak indicator on its own, shows us that the market is burning hot and needs a cooling-off period. This supports my other data points. 💰 Trading Tip 💰 It's reasonable to take half profits at the first resistance target in a long trade, or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worry of losing money. This helps improve trading psychology and the equity in your account. ⚠️ Risk Warning! ⚠️ Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk! Like 👍 and Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
KRAKEN:ADAUSDLong
by TraderEngineering
13
ADA → Cardano Pullback Followed by New Highs? Let's Answer.ADA completed its measured move to $0.68 and has now completed two legs down in a pullback to Support Zone #1. Should we long here? How do we trade this?  🤔 Support Zone #1 has held through two failed attempts to break down. We have a strong bull bar leading into the Daily 30EMA where we are now seeing some resistance. The RSI is around 50 and above the Moving Average, another sign for a long position. The only thing we're missing is a solid Risk/Reward Ratio, which requires the price pullback a bit more before we can enter the market. We ought to target at least a 1:2 Risk/Reward, but I believe we have the runway for a 1:3 Risk/Reward given the distance to the previous high of $0.68. Target the $0.487 area for an entry and place a stop loss below Support Zone #1 around $0.44, the first Take Profit at $0.535, and the final Take Profit around $0.63 or until you see a sell signal. Move the stop loss up to the entry price when Take Profit #1 is hit to lock in profits. 💡 Trade Idea 💡 Long Entry: $0.4875 🟥 Stop Loss: $0.440 ✅ Take Profit #1: $0.535 ✅ Take Profit #2: $0.630 ⚖️ Risk/Reward Ratio: 1:3 🔑 Key Takeaways 🔑 1. Two-legged pullback after a bull run 2. Two failed attempts to break Support Zone #1 3. Strong bull bar after pullback into the Daily 30EMA 4. Wait for the price to pullback to the $0.487 area for an entry 5. RSI at 50.00 and above the moving average, supports long bias. 💰 Trading Tip 💰 Trends typically have 3 pushes in either direction before a trend change begins. Along with other market indicators, creates a situation to look for counter-trend trades because the probability of profit is high enough. ⚠️ Risk Warning! ⚠️ Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk! Like 👍 and Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
KRAKEN:ADAUSDLong
by TraderEngineering
ADA → Cardano Threatening to Fall to Support. Should We Short?ADA closed the large bull gap from our previous analysis and found support at the large bull candle open. We did not get a higher high and Bitcoin is showing signs of a pullback. Should we short here? How do we trade this? 🤔 We should not short ADA on the Daily timeframe. The time to short was after the double top reversal near the $0.60 price range, we're too far away from the proper stop loss placement relative to Support Zone #1. You can find short trades on the 1HR timeframe or lower but for the Daily/4HR timeframe, we need to look for long entries. We can wait for a bounce on Support Zone #1 to enter a long, but the crypto market may be looking at a more significant pullback. It's difficult to tell how the alt coin market will react to say, a 30% Bitcoin pullback. The point is, don't think that Support Zone #2 isn't a probable target. Either zone is reasonably to long, but we need to wait for the buy signal and confirmation bars before entering. A good buy signal is one with a long wick on the bottom at least 1/3 the size of the body closing on or near its high. A confirmation candle will be a strong bull candle closing on or near its low following the buy signal buy 1 to a few bars. Until then, it's best to trade a different currency pair and wait for a good long opportunity here on ADA. 💡 Trade Idea 💡 Long Entry: $0.4210 🟥 Stop Loss: $0.3734 ✅ Take Profit #1: $0.4690 ✅ Take Profit #2: $0.5640 ⚖️ Risk/Reward Ratio: 1:3 🔑 Key Takeaways 🔑 1. Large Bull Bar Gap Closed. 2. Strong Support on the Daily 30EMA. 3. Lower High after the 30EMA bounce. 4. Bad Risk/Reward Ratio for a short, wait for a long setup at Support Zone #1 or Support Zone #2 5. Bitcoin Showing Strong Reversal Signals, Impacts Market Sentiment. 💰 Trading Tip 💰 It's reasonable to take half profits at the first resistance target in a long trade, or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worry of losing money. This helps improve trading psychology and the equity in your account. ⚠️ Risk Warning! ⚠️ Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk! Like 👍 and Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
KRAKEN:ADAUSDLong
by TraderEngineering
ADA → Cardano Racing Toward Resistance! Will We Reverse!?Cardano is racing toward the Resistance Zone after a successful break to the upside from last week's bull flag, as predicted in our last analysis. We're getting closer to resistance and the big question is, do we short it? How do we trade this? 🤔 If you're still in a long from bull flag breakout, good! Don't exit yet as we have not seen a reversal signal. ADA likely will make it to $0.45, I would take profits around that price area. Once we hit the resistance zone it's reasonable to expect a pullback or even a reversal. If we get a bear signal bar followed by a confirmation bar closing on or near its low, it's reasonable to short. We are in a bullish macro trend, so a short would be playing the reversal where Probability is low, but Risk/Reward is over 1:2. I would take half profits at 1:1 around $0.422, move the stop loss up to your entry price and swing the rest until we see the reversal bar to the upside. 💡 Trade Idea 💡 Short Entry: $0.446 🟥 Stop Loss: $0.468 ✅ Take Profit #1: $0.422 ✅ Take Profit #2: $0.403 ⚖️ Risk/Reward Ratio: 1:2 🔑 Key Takeaways 🔑 1. Bull Breakout of 200EMA Followed by Bull Run. 2. Bull Flag Continuation Pattern Playing Out. 3. Resistance Zone Approaching, Look for Sell Signal. 4. Do Not Short Until Sell Signal and Bear Confirmation Candle Close. 5. RSI at 65.00, Above Moving Average. More Up Before Down. ⚠️ Risk Warning! ⚠️ Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk! Like 👍 and comment if you found this analysis useful!
KRAKEN:ADAUSDShort
by TraderEngineering
19
ADA - BULLISH LOOKADA starts to look really juicy. The BTC is in sideway mode and that's what the alts need so much. We can see in chart a double bottom with higher low which might be the end of wave 2 of the bigger degree. So, we may count that the greater move of the wave 3 is ahead of us. This wave will consist of the waves of lesser degree. I am pointing out the red zones that seem important to me and I see them as my targets. These zones represent the resistances and lvls of the Fib extension.
Long
by tommyelltom