ADAUSDT - Possibility of breakout and continuation

Hi everyone,

This is a possibility I am considering for Cardano. I think the chart explains the idea itself. RSI bullish divergence and MACD bullish divergence, both identified. Therefore I will be watching the volume during the next few days, as a signal for a potential breakout from the current pattern. The support around 0.0555 should help this chance. In any case, I will wait for the breakout, hopefully near the .618 retracement.

I will be updating this content.

*Not financial advise. Just sharing my ideas :)

Feel free to give your feedback/opinion. Thanks for reading!

Comment:

Watching carefully. High volatilty at the moment, could be a false breakout.

Trade active:

Bought a portion during this breakout. Not fully convinced, as I expected this in lower levels, but let's see where it goes.

Trade active:

The way I see it, keep the trade active. If a candle closes inside the wedge I will close manually the trade and proceed the same way in lower level. I still think this could be a false breakout.

Comment:

Bit more than one hour to close the last 4h candle. It is fighting to close inside/outside the wedge. I do see a bearish cross in the MACD that pushes me to lean bearish. Still holding the partial position though.

Comment:

Why only partial? I do not believe much in this breakout. The condition for me to believe strongly is if I see increasing volume for many candles. I do think it will dip to the lower Fibonacci level.

Comment:

As you can see, Cardano and many other alts are being hammered. All is going according to the main plan though, and the partial buy was wrong and indeed was a false breakout (not enough volume was a sign).
Therefore, waiting for the price to test next support level and see how is the reaction.

Trade active:

Volume increase and....breakout!

Trade closed manually:

Setup stop loss and take profit as you like :) Be always thankful for every succesful trade.

Thanks for reading this setup, my pleasure.