fxs_header_sponsor_anchor

Cardano price may spike to $1.25 before finding resistance

  • 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.

 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.