Trade Recommendation: Cardano

Cardano (ADA/BTC) is a market that’s giving us clear-cut buy and sell levels.

March 2019 was a great time to hold the altcoin. In about a month, the market rose from 0.0000106 on March 4th to as high as 0.00001944 on April 3rd.

At that point, the market looked toppish. It flashed a bearish divergence on the daily chart. On top of that, the daily chart had a long wick on top of the body. These signals told us that a dump was incoming. Sure enough, the market experienced profit-taking the very next day.

The selling pressure was so heavy that Cardano is back to where it started on March 4th. Nevertheless, this gives us a chance to buy the market at a steep discount.

Technical analysis shows that ADA/BTC is headed to support of 0.0000106. We have this view because Cardano broke support of 0.000013 on May 1st. Below 0.000013, the next durable support is 0.0000106.

This support is very likely to hold because it is the price range where bulls accumulated positions from January to March 2019. In addition, the daily RSI is oversold. These signals tell us that a bounce is on the horizon.

The strategy is to buy on dips as close to 0.0000106 as possible. If bulls can stay above this level, they will likely generate a rally to our target of 0.000013. Take that out and 0.0000195 is next.

The process may take a month.

Daily Chart of Cardano/Bitcoin on Binance

As of this writing, the Cardano/Bitcoin pair is trading at 0.00001097 on Binance.

Summary of Strategy

Buy: As close to 0.0000106 as possible.

Targets: 0.000013 and 0.0000195.

Stop: 0.0000101

 

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.