cheynos
Long

ADA update + risk/reward analysis (ADAUSD, ADABTC)

BINANCE:ADAUSD   Cardano / US Dollar (calculated by TradingView)
Hello everyone
Today an update on ADA . We will have a look at some price-action (ADAUSD) and we will have a look at the ADABTC chart. Let’s get straight into this!

ADAUSD

-I always like to start with the support and resistance-lines. So we can see that we found some support at 0.10 few days in a row. This could be a great indicator of some reversal in this chart, nevertheless this will not be the case if you ask me. The 0.10 isn’t a support level if you look at historical price-action, this is just a pit stop if you ask me. We have a very strong down-momentum going on right now. If we look at the hourly chart, we can see 2 clear bear flags aswell, if the bear flag confirms, then we should go down to 0.98.

-Last time I told you guys about the triple bottom, which is denied in the last couple of days, we broke through that support level , which means that the 0.116 is now a resistance level . We will not go above that level without some good fundamental news ( ex: BTC-etf,…).

-Risk-reward: worst case scenario is that we break the 0.98 level and that we go straight down to 0.8, if that’s the case, we go down with 28%. In best case scenario we break through our resistance at 0.116 and go up to our first strong resistance at 0.16. If that is the case we go up with 43%. I’m not doing this trade, I think that we will not go above our first resistance at 0.116. it isn’t worth the risk at all (ADAUSD).

-So my prediction is that we will bounce of our 0.10 to be rejected at 0.116. our next stop is at 0.98 if you ask me. The possible BTC-etf will decide from there on.

ADABTC

This chart is way more interesting than our ADAUSD chart!

-So we can see that we’re in a small uptrend. We are creating higher lows in the last week. It’s not surprising that this uptrend started at 0.000017, this is a very strong support line, we have bounced off this level a few times in the past. So that’s a level that we have to keep an eye on!

-The same problem here as in ADAUSD. So we’ve created a beautiful triple bottom at 0.00002, then we broke through that level so now it has become a huge resistance line. I think that ADABTC will go up for sure. BTC-dominance is now over 50%, so enough margin there. ADA will probably keep creating higher lows until the first support at 0.00002. Another level to keep a strong eye on.

-Another thing I told you guys last time: we’ve bounced off at the exact same level as we did last time (4 months ago). This is huge! The bulls becomes stronger if we reach the 0.000017 level.

-Risk reward: could be interesting, our first very strong support level is at 0.000017 ( -3.88%), our first strong resistance is at 0.00002 ( +12.26%).

(-long on ADABTC , neutral/short on ADAUSD short term).
(long on ADAUSD long term)

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