Trade Recommendation: Cardano

Our February 18, 2019 trade recommendation for Cardano (ADA/BTC) hit both targets. The first target was reached on March 21 when the market climbed as high as 0.0000135. It then achieved our second target on March 23 when Cardano posted a high of 0.00001615. Those who followed the trade recommendation grew their investments by over 48% in a month.

If you missed this trade recommendation, don’t worry. Cardano is just getting started. This altcoin has the potential to more than double your investments in the next few months. But, let’s not get ahead of ourselves. The level-headed strategy is to watch Cardano move from one level to the next.

Technical analysis shows that ADA/BTC is currently correcting after it broke out of an inverse head and shoulders pattern on the daily chart. The correction does not mean that the market has topped out. On the contrary, it is simply giving technical indicators a chance to cool off. A quick look at the daily RSI shows that the market is massively overbought. It must retrace and create a new base to keep the run sustainable.

Even with these signals, Cardano remains strong. Volume has significantly declined after the breakout, which indicates that consolidation is taking place. This will help the market shed off overbought readings. In addition, the 100-day moving average just crossed above the 200-day moving average. This golden cross tells us that the market has turned bullish.

The strategy is to buy on dips as close to 0.000014 as possible. If bulls can stay above this level, they will likely generate a rally to our targets of 0.00002 and 0.000026.

The process may take a month.

Daily Chart of Cardano/Bitcoin on Binance

As of this writing, the Cardano/Bitcoin pair is trading at 0.00001503 on Binance.

Summary of Strategy

Buy: As close to 0.000014 as possible.

Targets: 0.00002 and 0.000026.

Stop: 0.0000133

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.