Cardano price action whipsaws bulls and bears despite ADA $2.50 target


  • Cardano price action has caused pain for longs and short.
  • Possible short entry limited by near-term support.
  • Possible long entry requires a substantial gain before buyers can safely enter.

Cardano price action has been some of the most volatile and indecisive of all high market cap cryptocurrencies. As a result, Wednesday's sell-off terminated what looked like the beginning of a new bullish expansion phase. However, trade opportunities of equal weight and probabilities are now present.

Cardano price, while mixed, has two clear entry opportunities that will likely define the trend for the remainder of 2021

Cardano price has an ideal, theoretical long entry idea on the break of a Split Triple-Top pattern on its $0.05/3-box Point and Figure Chart. The long idea is a buy stop at $2.45, a stop loss at $2.20 and a profit target at $3.15. The strength of this long idea is based on another factor besides the breakout above a triple-top: price returning above the falling wedge pattern. A three-box trailing stop could help protect any potential profit generated.

ADA/USD $0.05/3-box Reversal Point and Figure Chart

The theoretical long trade is invalidated if the Cardano price drops below $2.00.

The hypothetical short idea is a sell stop at $1.90, a stop loss at $2.10 and a profit target at $1.20. The short setup entry is on the breakout below a triple-bottom. Because a triple-bottom break is such a bearish event, significant momentum generally follows.

That momentum could push Cardano price below the lower trend-line of the falling wedge and generate a massive bull trap. A two to three-box trailing stop would help protect any implied profits post entry.

ADA/USD $0.05/3-box Reversal Point and Figure Chart

The short idea is invalidated if Cardano price moves above $2.40.

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Decentraland price targets $2.50 to terminate downtrend

Decentraland price at an inflection point. MANA completed a 50% logarithmic retracement, fulfilling conditions for a new floor to target new highs. $2.50 is the critical resistance zone to break above to initiate a new bull run.

More Decentraland news

Binance Coin price needs to reclaim $414 to avoid further losses

Binance Coin price must reclaim $414 as support in order for the bulls to target higher levels. BNB may be confronted with a stiff hurdle at the 50% retracement level at $504. If BNB fails to slice above $414, the exchange token may drop lower.

More Binance Coin news

Cardano price struggles with recovery as ADA bulls confront challenges ahead

Cardano price is struggling to lift prices higher although selling pressure eased. ADA may continue to be sealed in a consolidation chart pattern as the token confronts stiff resistances ahead while the buyers attempt to target higher levels.

More Cardano news

Crypto.com gives up 7% gain post Fed, CRO at a make-or-break point

Crypto.com price was handed a massive rejection move during the Wednesday trade session – as did the broader cryptocurrency market. As a result, the interpretation of Wednesday's candlestick leans heavily on the bearish side of the trade.

More Crypto.com news

Bitcoin: BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read full analysis

BTC

ETH

XRP