ADA has lost 61% since September in an endless waterfall to the downside. Price has arrived on the PoC (Point of Control) when we take the volume profile from the beginning of the year until today. The PoC simply means that the most trading volume has occurred at this price. Usually price is drawn to these high volume nodes, but once arrived, it doesn’t stay and moves away to the next node, which is why we can take it as a significant support (or resistance).
Elliott:
We can, theoretically, count a complete ABC correction (in blue). Price has retraced 78.6% of the previous wave.
Geometry:
Price reacts well to the current pitchfork. A break above the median can be taken as a first buy signal.
MACD:
We have bullish divergence and a crossover on the daily TF.
How I trade it:
While below the 20 week MA (in orange), Cardano is officially in bear territory. An idea could be to build long exposure when ADA breaks the pitchfork median, because BTC and major alts have bullish setups as well. The intention is to speculate on a completed correction and that ADA correlates with the rest of crypto. The idea is invalidated if ADA fails to receive buying volume. Significant volume is necessary to absorb sellers and jumpstart an active sequence to the upside.
Elliott:
We can, theoretically, count a complete ABC correction (in blue). Price has retraced 78.6% of the previous wave.
Geometry:
Price reacts well to the current pitchfork. A break above the median can be taken as a first buy signal.
MACD:
We have bullish divergence and a crossover on the daily TF.
How I trade it:
While below the 20 week MA (in orange), Cardano is officially in bear territory. An idea could be to build long exposure when ADA breaks the pitchfork median, because BTC and major alts have bullish setups as well. The intention is to speculate on a completed correction and that ADA correlates with the rest of crypto. The idea is invalidated if ADA fails to receive buying volume. Significant volume is necessary to absorb sellers and jumpstart an active sequence to the upside.