Trade Recommendation: Cardano (ADA)
Cardano (ADA/BTC) is one of those coins that has been brutally pummelled over the last few months. After recording a 2019 high of 0.00001944 in April, the cryptocurrency lost all bullish steam. It nosedived and took out every support until it printed a fresh all-time low of 0.00000524 on Binance. The downturn is an unfortunate turn of events for a fundamentally sound cryptocurrency.
The good news is that Cardano has kept one support intact. As long as this level is alive, there is hope for the crypto token.
Technical analysis shows that ADA/BTC is respecting support of 0.0000057. We have his view because even though the market dropped below that price area on July 15th, bulls responded and lifted Cardano above the support on July 20th. Since then, the cryptocurrency has been trading above the support.
Also, a look at the weekly chart shows that Cardano is printing a falling wedge. It is very close to trading at the apex of the structure. This comes at a time when the market is flashing oversold readings on the weekly RSI. Therefore, we have a combination of an undervalued cryptocurrency trading close to a demand area. This has been a proven formula for a bounce and a breakout for many cryptos historically.
The strategy is to buy on dips as close to 0.0000057 as possible. If bulls can stay above this level, they will likely generate a rally to our target of 0.00001.
The process may take a month.
Daily Chart of Cardano/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.0000057 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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