CARDANO ($ADA): Can the Coming Upgrade Gets Us a Nice Short?
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Cardano is taking the next big step with its Shelley test net. If all goes well, Shelley main net should go live later this year. ADA has room to run here, but with the overall trend so bearish, it is hard to see a run as anything more than a setup for a short. With that in mind, let's look at some optimal levels to short from.
Resource: bravenewcoin.com/ins...-for-later-this-year
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1. Fractal Trend has been showing a downtrend (Maroon bar color) on the daily timeframe for some time. This sustained downtrend naturally has us looking to meet any strength in ADA with a short entry.
2. With this strategy, we are looking for short setups in a downtrend and as such want to enter short on retests of bearish order blocks plotted by Orderblock Mapping (Maroon) and/or bullish S/R levels plotted by Directional Bias (Maroon).
3. Despite some bullish short term price action with Cardano consolidating within a pennant, We are currently assuming the downtrend will ultimately continue. As such, we are looking for a retest of the nearest key resistance levels to enter short. R2 looks like it will give us a great short term entry, while R3 looks ideal for a medium term short entry.
4. This trade only has two relevant exit conditions. Either we close at our target, or we close if our stoploss is hit. We don't expect to close based on a change in trend, because the trend is so bearish on the daily timeframe that we would likely only see a change in trend after our stop was hit.
5. Finally, it is worth pointing out some support levels below. S1 is relevant because it is our target for our R2 entry. Meanwhile, S2 is the bottom of the long term range that has been forming, while S3 is a total return to ADA's launch price. Of course price can always go lower, but we don't have any other key levels on the daily timeframe chart.
Good luck with this one bears.
Like, Comment & Follow to help the community grow 🎉🎉
---
Cardano is taking the next big step with its Shelley test net. If all goes well, Shelley main net should go live later this year. ADA has room to run here, but with the overall trend so bearish, it is hard to see a run as anything more than a setup for a short. With that in mind, let's look at some optimal levels to short from.
Resource: bravenewcoin.com/ins...-for-later-this-year
---
1. Fractal Trend has been showing a downtrend (Maroon bar color) on the daily timeframe for some time. This sustained downtrend naturally has us looking to meet any strength in ADA with a short entry.
2. With this strategy, we are looking for short setups in a downtrend and as such want to enter short on retests of bearish order blocks plotted by Orderblock Mapping (Maroon) and/or bullish S/R levels plotted by Directional Bias (Maroon).
3. Despite some bullish short term price action with Cardano consolidating within a pennant, We are currently assuming the downtrend will ultimately continue. As such, we are looking for a retest of the nearest key resistance levels to enter short. R2 looks like it will give us a great short term entry, while R3 looks ideal for a medium term short entry.
4. This trade only has two relevant exit conditions. Either we close at our target, or we close if our stoploss is hit. We don't expect to close based on a change in trend, because the trend is so bearish on the daily timeframe that we would likely only see a change in trend after our stop was hit.
5. Finally, it is worth pointing out some support levels below. S1 is relevant because it is our target for our R2 entry. Meanwhile, S2 is the bottom of the long term range that has been forming, while S3 is a total return to ADA's launch price. Of course price can always go lower, but we don't have any other key levels on the daily timeframe chart.
Good luck with this one bears.
