Cardano Elliott Wave technical analysis [Video]
|ADA/USD Elliott Wave analysis – Daily chart
Function: Follow Trend.
Mode: Motive.
Structure: Impulse.
Position: Wave 2.
Direction next higher degrees: Wave 3 (developing).
Wave cancel invalid level: Not specified.
The ADAUSD daily chart indicates the completion of both wave 1 and wave 2 within a bullish impulsive structure. Wave 2 retraced near the Fibonacci 0.618 level at approximately 0.543 USD. Currently, wave 3 is emerging with an expected Fibonacci 1.618 extension target from wave 1 around 0.685 USD.
Trading strategy
-
For short-term traders (swing trade):
-
Consider buying during dips.
-
Set Stop Loss just below 0.511 USD.
-
-
Risk management is critical. Price moving below 0.511 USD invalidates the bullish outlook in the short term.
ADA/USD Elliott Wave technical analysis – Four-hour chart
Function: Follow Trend.
Mode: Motive.
Structure: Impulse.
Position: Wave 2.
Direction next higher degrees: Wave 3 (developing).
Wave cancel invalid level: Not specified.
The H4 chart mirrors the daily analysis. Wave 1 and 2 of the uptrend are complete, with wave 2 hitting the 0.618 Fibonacci retracement near 0.543 USD. An impulsive wave 3 is likely forming, targeting approximately 0.685 USD based on wave 1's 1.618 Fibonacci projection.
Trading strategy
-
Swing trade approach:
-
Look for buy opportunities during retracements.
-
Maintain Stop Loss below 0.511 USD to manage risk effectively.
-
-
A break below 0.511 USD calls for re-evaluation of the current bullish setup.
Cardano (ADA/USD) Elliott Wave technical analysis [Video]
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.