ADA → Cardano Ascending Wedge Signals a Drop! Will It Happen?

Cardano is forming an ascending wedge pattern, a bearish formation that the majority of the time ends in a fall below the support line. For the next few days, we need to consider that the probable outcome.


How do we trade this? 🤔

ADA → Cardano Ascending Wedge Signals a Drop! Will It Happen?

Consider waiting for one more attempt to break resistance at the top of the wedge around the $0.68 area. A rejection at that level creates a reasonable reversal entry for a 1:2 Risk/Reward Ratio trade. Target the $0.52 range where previous support was demonstrated.

Don't be too hasty to enter, we're still in a bull trend and ought not bet against the trend until all of the requirements are met. This includes a strong sell signal (large wick on top, price closing near or on its low), followed by a confirmation candle or candles (strong bear candles closing on or near their lows). It's greater probability of profit if that confirmation candle closes below the 1HR 30RMA.


💡 Trade Idea 💡

Short Entry: $0.6400
🟥 Stop Loss: $0.6986
✅ Take Profit: $0.5230
⚖️ Risk/Reward Ratio: 1:2


🔑 Key Takeaways 🔑

1. Ascending Wedge, Bias to Short.
2. Daily Measured Move Complete, Trend Change Probable.
3. Three Pushes Up in a Bull Run, Trend Change Probable.
4. 1HR RSI at 50.00 on Moving Average, Indecision.
5. Bitcoin at Risk of Trend Change, Supports Short Bias.


⚠️ 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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