Cardano Elliott Wave technical analysis [Video]

ADA/USD Elliott Wave technical overview

• Function: Counter-Trend.

• Mode: Corrective.

• Structure: Flat.

• Current position: Wave ((C)).

• Next direction (higher degree): Wave II.

• Invalidation level: Not specified.

Trading strategy for ADA/USD

The ADA/USD pair remains in a corrective Elliott Wave pattern, identified as Wave II. This wave represents a retracement and has now entered a significant support area around $0.5544, aligning with the 0.618 Fibonacci retracement level of Wave I.

Trading strategies

• Strategy overview:

  • For Short-Term Traders (Swing Trade):

    •  Bullish scenario:

      • If the price holds above the $0.5544 support level and begins to show signs of a reversal, a Buy position could be considered.

      • The target for this upward move is $0.8500.

      • Bullish confirmation will be established once the price breaks above the designated bullish confirmation level.

• Risk management:

  • If ADA/USD drops below the critical $0.2850 support level, the current bullish structure becomes invalid.

ADA/USD Elliott Wave technical overview

• Function: Counter-Trend.

• Mode: Corrective.

• Structure: Flat.

• Current Position: Wave ((C)).

• Next direction (higher degree): Wave II.

• Invalidation level: Not specified.

Trading Strategy for ADA/USD (Four-hour view)

The pair continues to move in a clear Elliott Wave structure under correction (Wave II), approaching a strong support at $0.5544, which corresponds with the 0.618 Fibonacci retracement level of Wave I.

Trading strategies

• Strategy overview:

  • For short-term traders (swing trade):

    •  Bullish scenario:

      • As long as the price stays above $0.5544 and begins to reverse, a Buy setup can be considered.

      • Target remains at $0.8500.

      • Bullish momentum is confirmed with a breakout above the bullish level.

• Risk management:

  • If price declines below $0.2850, the bullish structure is invalidated.

Cardano Elliott Wave technical analysis [Video]