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]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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