Cardano, 29 Nov. Is Cardano a Buy?
ADA has lost 54% since September and the waterfall to the downside apparently has no end. Let’s take a look if that could change.
Elliott:
We can, theoretically, count a complete 5-waves move to the downside (in blue). This wave is the end of a larger 5-waves down.
Geometry:
Price bounced from the pitchfork median, which is precisely the 65% retracement of the previous wave that began in May. ADA reacts to the red channel, so that a breakout would be a bullish signal.
MACD:
We have bullish divergence and a crossover of the MACD line above the Signal line on the 8h. A crossover on the 1D would trigger a buy signal.
How I trade it:
An idea could be to look for a re-accumulation and build long exposure when ADA breaks the red channel (and the .5 fib of the pitchfork) to the upside, for example above 1.7. We need a 4h/1d candle close above this area so we don’t enter on a fakeout wick. The intention is to speculate on a complete extended flat correction in BTC and trade the correlation in ADA.
Elliott:
We can, theoretically, count a complete 5-waves move to the downside (in blue). This wave is the end of a larger 5-waves down.
Geometry:
Price bounced from the pitchfork median, which is precisely the 65% retracement of the previous wave that began in May. ADA reacts to the red channel, so that a breakout would be a bullish signal.
MACD:
We have bullish divergence and a crossover of the MACD line above the Signal line on the 8h. A crossover on the 1D would trigger a buy signal.
How I trade it:
An idea could be to look for a re-accumulation and build long exposure when ADA breaks the red channel (and the .5 fib of the pitchfork) to the upside, for example above 1.7. We need a 4h/1d candle close above this area so we don’t enter on a fakeout wick. The intention is to speculate on a complete extended flat correction in BTC and trade the correlation in ADA.
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