Cardano price suggests big moves ahead despite lackluster ADA
- Cardano price is the worst-performing large market cap cryptocurrency.
- Eight consecutive weeks of weekly candlestick closes below the open completes Gann’s ‘Death Zone’ cycle.
- An extremely bullish pattern is developing on the Point and Figure chart.
Cardano price has easily been the most disappointing of the significant market cap cryptocurrencies. It is currently trading lower by 35% from the all-time high it set during the week of September 3rd. Cardano has traded lower by as much as 42% from the all-time high. But bullish price action may be just around the Corner
Cardano price completes a Gann cycle, positions for a breakout on the Point and Figure chart
Cardano price could experience a swift and violent move higher over the weekend. The reason for the spike is not due to the Point and Figure chart alone, but the completion of a critical cycle in Gann Analysis known as the ‘Death Zone’ cycle. Gann described the death zone as any move that lasts around forty-nine to fifty-two days in a persistent trend/direction. Gann warned that markets often experience rapid reversals and/or corrections after this cycle.
Coinciding with the Gann ‘Death Zone’ cycle is the development of the Bullish Catapult set up on Cardano’s $0.02/3-box reversal Point and Figure chart. The hypothetical trade setup is a buy stop at $2.08, a stop loss at $2.00 and a profit target at $2.28. This theoretical trade idea is invalidated if Cardano drops below $1.94.
ADA/USD $0.02/3-box Reversal Point and Figure Chart
Failure to hold the $1.90 level as support could trigger swift selling pressure to the $1.70 value area.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
