TradingShot

CARDANO Handle followed by rally to $10-15??

Long
BINANCE:ADAUSD   Cardano / US Dollar (calculated by TradingView)
ADAUSD has been one of the best performing cryptocoins since the market made its late July bottom and started to rebound. It is one of the few coins and the only high cap that broke its pre May correction highs.

As you see on the chart, the pattern since mid May looks like a Cup formation. The same pattern was last seen from August until November 2020. On that pattern a Handle followed the Cup and completed the well known bullish formation of "Cup and Handle" (C&H). That initiated a two month parabolic rally. If the pattern is replicated then we should now see a minor pull-back/ consolidation that will give way to the new parabolic rally. Notice that the pre-handle rebounds on both patterns started after a squeeze/ convergence of the 1D MA50 (blue trend-line) and the 1D MA200 (orange trend-line). The RSI also printed a handle.

If that's the case, then the logical question that should come on mind is how high can this rally go? Well that can be explained using the Fibonacci Channel. As you see I've plotted that at the bottom of the COVID crash (March 2020). The first High of the Channel was naturally on the Fib 1.0. The parabolic rally of the first C&H stopped and made a Higher High on Fib 1.5 (i.e. 0.5 Fib higher than the previous). If this arithmetic sequences continues then the next Higher High (led by the new parabolic rally) should be on Fib 2.0 (i.e. 0.5 Fib higher than the previous). Within a rough two month time-frame, that should be approximately within $10 and $15.

Do you think that's a realistic target for Cardano?



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