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!
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