Massive Potential for Cardano If The Trendline is Reclaimed
One of my favorite long setups is when something briefly goes below a long term support, only to bought back up above it again. This happened with TRX in December, which is why I went long, catching the rise from 360 sats to 600 before taking profit.
This is quick. In my first ADA post, I suggested that a capitulation low was possible, but that ADA was (for the most part) respecting a long, slow, uptrend channel against Bitcoin. If you zoom out, you can see it. Also, the ADA/USD chart is looking great. Just bounced off the support of a potential MASSIVE inverse head and shoulders if the $0.094 area is broken:
Setup:
LONG if We have a sustained break above 1100.
Targets:
1250 (or light blue neckline)
2000 (or top of channel)
Second LONG:
If channel resistance is broken.
Target is wherever one is comfortable with profit, or depending on price action.
STOP LOSS - possibly below 1000 again.
This is not financial advice. Just a potential setup I'm seeing, and wanted to get this out in the open. I personally entered a small trading position at 1060 today.
****It should be noted that most altcoins today are trying to get back above major broken support, but have NOT confirmed yet.
-Victor Cobra
This is quick. In my first ADA post, I suggested that a capitulation low was possible, but that ADA was (for the most part) respecting a long, slow, uptrend channel against Bitcoin. If you zoom out, you can see it. Also, the ADA/USD chart is looking great. Just bounced off the support of a potential MASSIVE inverse head and shoulders if the $0.094 area is broken:
Setup:
LONG if We have a sustained break above 1100.
Targets:
1250 (or light blue neckline)
2000 (or top of channel)
Second LONG:
If channel resistance is broken.
Target is wherever one is comfortable with profit, or depending on price action.
STOP LOSS - possibly below 1000 again.
This is not financial advice. Just a potential setup I'm seeing, and wanted to get this out in the open. I personally entered a small trading position at 1060 today.
****It should be noted that most altcoins today are trying to get back above major broken support, but have NOT confirmed yet.
-Victor Cobra
Comment:
So far, this setup has not been confirmed. We dipped below 1000 today, so still seeing some weakness here. Ideally we need to get well over 1100 again.
Comment:
Just touching 1100 now and building some buy pressure. If it breaks, this thing might really pop. We might get a fakeout initially first to tap liquidity - if it's going to ultimately move up.
Trade active:
Here we go. Let's see if this is the real deal. In from 1060 (as mentioned above). Did not set a stop loss below 1000 (would've gotten shaken out).
Comment:
So far, the resistance was too heavy, but we're consolidating back above the support so far, which is a good sign...as long as we don't get a sharp selloff soon.
Comment:
Oops, accidentally posted a link to this idea hahaha. Here is what I meant to post:
Comment:
After breaking below the bottom support (pink), ADA has actually failed to get back above it, and is still failing to do so today. We're building some buy pressure just below it, but it could also be a bad sign that we haven't been able to reclaim it so far.
Comment:
The USD chart still looks pretty good. Perhaps it could use a bit more time though, if it's going to have a major breakout.
Comment:
We could also break above sooner rather than later. We're seeing some bullish moves in a few established alts already (namely NEO today). Let's see. Obviously this trade isn't confirmed until we're well back above 1100.
