Cardano (ADA/BTC) is a market that’s giving us signals that bears are exhausted.
The market dropped to as low as 0.0000091 on May 13, 2019. At that point, Cardano shed over 53% of its value from the recent high of 0.00001944 on April 3rd. That’s a painful drop for those who bought the top.
Nevertheless, bulls have a fighting chance to stop the bleeding. We can see them doing that in the next few days.
Technical analysis shows that ADA/BTC is headed to support of 0.00000925. We have this view because Cardano refused to go below this level on May 13th. At that time, the price dipped just below this level but the extreme oversold conditions sparked a bounce that sent the market to as high as 0.00001213 on May 16th.
The market has been pulling back since. With this correction, we see Cardano painting an Adam and Eve double bottom pattern.
Technical indicators support our view that the market is bottoming out. Volume is starting to increase which means buyers are returning. Prices are low enough to entice bottom-pickers. In addition, the daily RSI appears to have bottomed out. It generated a higher low at 35. These signals tell us that the market is reversing its trend.
The strategy is to buy on dips as close to 0.00000925 as possible. If bulls can stay above this level, they will likely generate a rally to our target of 0.0000126.
The process may take less than a month.
Daily Chart of Cardano/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.00000925 as possible.
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
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