Jonathan Morgan
Independent Analyst
- Cardano price pulled back from the Wednesday rally to test the Tenkan-Sen and found buyers.
- Weekly candlestick set to close in the green/white for the first time in six weeks.
- Oscillators support a strong and responsive bullish bounce that could likely exceed $1.00.
Cardano price is not only on track to close its first green/white weekly candlestick in six weeks, but, depending on the trading activity for the remainder of the day, ADA may close the weekly candlestick as a Bullish Engulfing candlestick.
Cardano price could trigger an impressive weekly close if buying momentum remains strong
Cardano price is on track to complete a very bullish candlestick pattern. The Bullish Engulfing candlestick has several interpretations depending on the market. Still, in a nutshell, as long as the body of the current candlestick engulfs the body of the prior candlestick, it is considered a Bullish Engulfing candlestick. If the Bullish Engulfing candlestick appears at the bottom of a trend, there is a strong probability that the market may reverse. However, confirmation is still needed in the form of another candlestick. But the oscillators support a strong rally from these lows.
The Relative Strength Index has bounced off the first oversold level in a bear market, 30, pointing higher. Likewise, the Composite Index developed regular bullish divergence and is now at an angle that will cross above the fast and slow-moving averages. Finally, the Optex Bands are at all-time lows, warning that a bottom is likely in for Cardano price.
ADA/USD Weekly Ichimoku Kinko Hyo Chart
The $0.02 3-box reversal Point and Figure clears out a lot of the noise present on the Cardano price candlestick chart. Additionally, it helps confirm the Ichimoku analysis by positioning a new long entry opportunity.
A hypothetical long trade exists with a buy stop order at $0.88, a stop loss at $0.80, and a profit target at $1.22. The trade setup represents a 4.25:1 reward for the risk. A two to three-box trailing stop is an option and could help protect any implied profit made post entry.
ADA/USD $0.02/3-box Reversal Point and Figure Chart
The setup is invalidated if Cardano price drops to $0.74 before the buy stop is hit.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Crypto traders brace for short-term volatility with $2.4 billion options expiry on Friday
Bitcoin and Ethereum options market looks bullish on Friday, according to data from intelligence tracker Greeks.live. The firm said it has identified two Bitcoin calls that show an underlying bullish sentiment among market participants.
XRP recovers from week-long decline following Ripple’s response to SEC motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.
Lido adds 4% gains as protocol rolls out first step towards decentralization
Lido takes the first batch of simple DVT validators to live, a step taken to decentralize the protocol. Lido leveraged technology to expand the protocol to multiple node operators, inviting both solo and community stakers.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.