Trade Recommendation: Cardano
The Cardano/Bitcoin (ADA/BTC) pair started to show signs of weakness just as it registered its 2018 high of 0.00008788 on January 4. Unfortunately for buyers at the top, the market would go on a long bear run for the next nine months. ADA/BTC went so deep in bear territory that it lost almost 90% of its value.
As disheartening as it may sound, recent price action gives us something to look forward to.
Technical analysis show that Cardano/Bitcoin has taken out resistance of 0.000011 yesterday, September 19. The breach triggered the breakout from the large falling wedge on the daily chart. This pattern was responsible for keeping the market bearish for most of the year.
The breakout looks convincing, too. The market printed volume that’s almost twice its daily average. The last time ADA/BTC generated the same volume buzz was back in April 2018.
Currently, ADA/BTC is pulling back due to overbought conditions on the hourly chart. Thus, it is very likely for the market to temporary go below the breakout. This can be your opportunity to buy cheap.
The strategy is to buy as close to 0.0000108 as possible. If bulls can stay above this level, they will attract more bottom fishers and bargain hunters. This will likely generate a rally to our target of 0.000025.
The process may take a month.
Daily Chart of Cardano/Bitcoin on Binance
As of this writing, the Cardano/Bitcoin pair is trading at 0.00001128 on Binance.
Summary of Strategy
Buy: As close to 0.0000108 as possible.
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.
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