Trade Recommendation: Cardano/Ethereum

Our trade recommendation for the Cardano/Ethereum (ADA/ETH) pair on June 24, 2018 achieved its target in less than a month. ADA/ETH climbed as high as 0.00039879 on July 19. Those who followed the recommendation grew their investments by around 30%.

As expected, ADA/ETH pulled back after the short rally. We believed it was due for one more leg down before it could launch a bull run. So far, ADA/ETH is following the script.

Technical analysis show that ADA/ETH is about to break out of a large symmetrical triangle pattern on the daily chart. This view comes after the pair completed the five waves of the triangle. Currently, ADA/ETH is trading at the apex of the triangle and near the resistance. Bears are working hard to keep market control but it’s just a matter of time before bulls run them over.

That’s because the daily RSI is about to explode as well. If bulls continue to respect the RSI support, then that should trigger a break out in momentum, volume, and price.

The strategy is to buy the breakout at 0.00034 after ADA/ETH generates volume of 30 million Cardano units. Overall altcoin sentiment remains bearish, which is why many are still shorting the market. ADA/ETH needs buyers to absorb the selling pressure.

A convincing breakout may take the market to our target of 0.00057. The process may take a month.

Daily Chart of Cardano/Ethereum on Binance

As of this writing, the Cardano/Ethereum pair is trading at 0.00033146 on Binance.

Summary of Strategy

Buy: Breakout at 0.000034 with volume of 30 million Cardano units.

Target: 0.00057

Stop: 0.00032 after the breakout.

 

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.

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