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.
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