ADA → Cardano Ready to Rip? Or Dip? Maybe $0.72 before Reversal.Cardano has been on a ride along with the entire crypto market for months and with a bull flag playing out, looks like we're going to get a little more upward price action. Should we long here?
How do we trade this? 🤔
We need to wait for a pullback to at least the 30EMA, maybe the 200EMA, whenever we see some bullish price action in response. A strong bull signal bar closing near its high and a confirmation candle are preferable. This gives us the necessary probability to enter a long and place a protective stop below the 200EMA around $0.59. Plan to take half profits at 1:1 Risk/Reward around $0.63, move your stop loss up to the entry price to secure profits, then take profits at the next reversal signal or at 1:3 Risk/Reward around $0.727.
We need to be aware that on the higher timeframes, Bitcoin and the crypto market is running hot and we should be on the lookout for a trend change. Either to a trading range and/or a reversal to the downside. We need to close a few more weekly candles to get an indication of the next market moves on the higher timeframes.
💡 Trade Ideas 💡
Long Entry: $0.630
🟥 Stop Loss: $0.599
✅ Take Profit #1: $0.630
✅ Take Profit #2: $0.727
⚖️ Risk/Reward Ratio: 1:3
🔑 Key Takeaways 🔑
1. Bull Flag after a Bull Run, Bias to Long.
2. Near Flag Resistance, Wait for a Pullback.
3. Gap to 1HR 30EMA and 200EMA, Wait for Pullback.
4. RSI at 64.00, Above Moving Average. Bias to Long.
5. Take half profits at 1:1, Remainder at 1:3.
💰 Trading Tip 💰
Bull flags in the proper context, provide over a 60% probability that a trend will continue. This provides justification to enter a long trade.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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