In this idea you will see a great short opportunity on Cardano (ADA). The price has been increasing rapidly over the last 4 days. The RSI has shown an incredible 70+ consistently. As a price momentum indicator this means that the price has been overbought. The prices are so high at the moment we cannot expect it to keep rising more.
If we look closer at the RSI, the momentum is already slowly decreasing, going back from levels around 91 to levels more close to 70. Since the price is almost back in the standard 30-70 RSI zone we are getting close to a nice opportunity for a short.
The next question we need to answer is where to exit our short. I found a nice 22% opportunity by shorting towards a S/R flip level. The resistance found earlier around the 0.065 level could turn into support once the price comes back from the top. This is where I suggest to take profit.
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- Trading Guru
-------------------------------------------------------------- Disclaimer! This post does not provide financial advice. It is for educational purposes only!
I’m curious to hear your thoughts! Let’s make use of the fantastic tradingview community and give each other feedback.
Tempestblack
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Thank you Guru...She did not drop as much as I would have liked her too....so I have not jumped back on...but I will be....i will be....:)
DarkWI
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The guys made a pump prices for news about the imminent update of the network. I think so
Trading-Guru
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@DarkRIDDeR, Thanks for the comment!
Tempestblack
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I jumped ship...so yea...out for now with profit....:)
Trading-Guru
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@Tempestblack, Sweeeet. That's also another way how you can read this. Entering a short equals leaving a long. If you were holding, this would be a great time to take profit