Trade Recommendation: Cardano

We’ve been tracking Cardano (ADA/BTC) for a while now. After respecting our range high of 0.0000134 on January 10, 2019, we hoped that it will revisit our range low of 0.00000848 so we can bottom pick the market. We had our hopes up on February 6 when the market went below our range midpoint of 0.00001094. Unfortunately, the market quickly extinguished that hope as Cardano recovered 0.00001094 on February 8.

At that point, we stayed patient to see whether the market would look bearish again. Over a week later, we’re convinced that Cardano is a market that wants to trend higher.

Technical analysis show that ADA/BTC is poised to take out resistance of 0.0000134. This view comes after the market printed a bullish higher low setup of 0.000001055 on February 6. With this setup, Cardano looks ready to trigger a breakout from an inverse head and shoulders pattern.

Technical indicators also appear to back up this view. The 12-hour RSI is also printing an inverse head and shoulders pattern. It looks primed to take out resistance of 60. On top of that, we can see the 200 moving average on the 12-hour chart crawling below our range midpoint of 0.00001094. It will act as an additional support and help keep Cardano trending higher.

The strategy is to buy as close to 0.00001094 as possible. If bulls can stay above this level, they will likely generate a rally to our targets of 0.0000134 and 0.0000167.

The process may take a month.

Daily Chart of Cardano/Bitcoin on Binance

As of this writing, the Cardano/Bitcoin pair is trading at 0.00001164 on Binance.

Summary of Strategy

Buy: As close to 0.00001094 as possible.

Targets: 0.0000134 and 0.0000167.

Stop: 0.0000105

 

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.