Trade Recommendation: Cardano

14:20 13/02/2018

The Cardano/Bitcoin (ADA/BTC) pair jump started its bull run on December 29, 2017 after it breached resistance of 0.00003. The market had such a strong momentum that it went as high as 0.00008788 on January 4, 2018. At this point, however, it was in extreme overbought territory. The rapid ascent was taken advantage by breakout players as they dumped positions.

With heavy selling pressure, the market went as low as 0.000036 on February 2. While there was a bounce that sent the market up to 0.00005390 on February 3, sellers exploited this roughly 50% spike. Since then, the market has been trading in a narrow range while gradually declining in price.

Technical analysis show that the market is creating a bullish continuation pattern as it continues to trade in a narrow range while in a downward slope. It appears to be headed down to support of 0.00003. At that price level, the market’s trading will be most likely at its narrowest. Breakout from the pattern should be imminent.

The strategy is to wait for the market to correct and drop to 0.00003 support. When it breaks out of the pattern, the target is 0.00008. The whole process might take a month.

Daily Chart of Cardano/Bitcoin on Binance

As of this writing, the Cardano/Bitcoin pair is trading at 0.00004061 on Binance.

 

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.


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