Hey friends, hope you are well, and welcome to the new update on Cardano (ADA) coin.
Previous harmonic moves:
Previously, the price action of ADA formed a bullish BAT, then Shark pattern and also broke out the triangle. Therefore when I shared my last analysis on Cardano I predicted the next price for ADA $2. This was the technical target of the ascending triangle.
Previous BAT pattern:
First, the Cardano formed this bullish harmonic bat move. After the formation of this bat move, the price action turned bullish. The price action moved upwards from the buying zone which was a very powerful move.
Previous Shark pattern:
After the powerful move of price action towards the upward direction, the price line formed the next harmonic shark move which is shown below:
Previous ascending triangle:
An ascending triangle was formed previously, which tells us that, if I place the trendline on the tip of this ascending triangle, then our next target can be easily beyond $2.
Rising wedge pattern:
Now the Cardano has found resistance at $2.30. After being rejected 2 to 3 times by this resistance, the price action has formed arising wedge pattern on the daily time frame chart and moved at the support of this rising wedge. It is likely to have a bounce by this support. Once we have a bounce, then the price action will reach the resistance, then there will be strong chances to break out this resistance.
Another open alligator mouth formation expected:
There was a perfect formation of an open alligator mouth by the simple moving averages with the time period of 25, 50, 100, and 200. Therefore the price action was very bullish. Previously we observed that when we had this open alligator mouth, therewas a very powerful bullish rally.
Then again, this alligator mouth was closed and now it is likely to open again. Here, we can also notice that the 25 SMA just crossed down the 50 simple moving average. Now it is likely to move up again. Once the 50 SMA will cross up the 50 simple moving average again, then another open alligator mouth will be formed, and we can expect another powerful rally to the upside that can lead the price action to the upside to break out the next resistance at $2.30.
Bullish Cypher pattern:
Now on the daily time frame chart, the price action of ADA with Bitcoin pair, has formed a bullish Cypher pattern. There is also additional support of 50 simple moving average in the buying zone.
Buy and sell targets:
Buy between: 0.00003944 to 0.00003684 btc
Sell between: 0.00004148 to 0.00004638 btc
The maximum extent of potential reversal zone 0.00003684 btc can be used as stop loss.
Possible profit and loss ratio:
As per the above targets, this trade has a big profit possibility of 25.5%, and the loss possibility is 7%.
Even though the target of the rising wedge pattern can be $2.5 and we can also follow the Fibonacci targets of the bullish Cypher pattern. However, the continuation of the harmonic moves is signaling a big move soon.
Note: Above idea is for educational purposes only. It is advised to diversify and strictly follow the stop loss, and don't get stuck with trade.
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