Cardano potential short setup as the price creates double top

ADA/USDT trading strategy

• Buy/sell asset: Sell ADA/USDT
• Entry price: 0.7335
• Stop loss: 0.7871
• Leverage: 1x
• Take profit 1: 0.6750
• Take profit 2: 0.6000
• Take profit 3: 0.5300
• Timeframe: 1-2 weeks
• Maximum profit: 27%
• Maximum loss: 7%

ADA/USDT chart and technical analysis

Cardano has been in a bullish trend for the last couple of months and the price made significant gains in that period. However, the bullish trend is fading away and bears are pushing the price down as the price formed a double top around the 0.7980.

The price has been dropping since then and making lower lows and will likely drop further in the coming days. The price also dropped below the key support of 0.6990 and formed a strong resistance zone at 0.7335.

I am expecting the price will retest the 0.7335 resistance level before dropping further. The 0.7335 is a strong resistance zone and the price formed long bearish candles with imbalances and fair value gaps. This price is also between 0.50 and 0.38 Fibonacci retracement levels.

Cardano fundamental analysis

Fundamentally, there are fewer fundamental events that can impact the price of Cardano significantly. Although, usually when the crypto market is choppy and ranging bearish trend follows it.

Cardano to Tether trade idea takeaways

• The price of ADA/USDT is likely to drop further after the price formed a double top pattern.
• The price of will probably drop to the 0.5300 support level in the coming days.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:38.
• The entry and stop-loss prices have been placed at secure levels with the least probability of getting hit.
• Good luck

The post Cardano potential short setup as the price creates double top appeared first on Invezz

Source