Trade Recommendation: Cardano
Our February 22, 2019 trade recommendation for Cardano (ADA/USD) hit both targets. If you stuck with the trading plan, you would have grown your investments by over 77% in about a month when the market traded as high as $0.071 on March 24.
Those who locked in profits may feel like they’ve sold a little too early as Cardano overshot our second target by a mile. It rallied to as high as $0.10184 on April 3. To be honest, we were expecting the market to consolidate a bit before bulls flexed their muscles. Nevertheless, there’s no reason to feel that bad because Cardano is giving us the chance to buy the dip.
Technical analysis shows that ADA/USD is likely headed to support of $0.07. This view comes as the market is trading near overbought conditions even after last week’s correction. Cardano needs to correct some more before it can resume its uptrend.
In addition, $0.07 is a key price point for Cardano. In October 2018, bears tried to take out this level but the support stood strong. It eventually broke in November 2018. The breakdown drove the pair to as low as $0.025601 on December 7, 2018. Now that Cardano has recovered $0.07, we expect bulls to consolidate above this level and cement $0.07 as a high demand area.
The strategy is to buy on dips as close to $0.07 as possible. If bulls can stay above this level, they will likely generate a rally to our targets of $0.102 and $0.134.
The process may take more than a month.
Daily Chart of Cardano/US Dollar on Kraken
As of this writing, the Cardano/US Dollar pair is trading at $0.082553 on Kraken.
Summary of Strategy
Buy: As close to $0.07 as possible.
Targets: $0.102 and $0.134.
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.