Table of Contents
In our Cardano previous analysis The Most Important Support For Cardano! Can The Bulls Hold On? we made a bullish prediction for the ADA price with our entry being a price break above the $1.1958 horizontal resistance on the 4-hour timeframe.
Well at the time of publishing this technical analysis, that bullish entry has been triggered and the ADA price is now trading above the $1.1958 previous highs.
This creates a bullish price structure for the ADA price and indicates a likely move higher in the coming days. However, there has to be a perfect way we can mange this position if it doesn’t go in our favour.
In this Cardano analysis, we will be talking about the key levels we are watching as well as the invalidation points the ADA price must stay above to remain bullish.
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New Key Support For Cardano
The most important key support for Cardano remains around the Neckline region on the 4-hour timeframe. As far price continues to trade above this Neckline region, we can expect to see the ADA bulls continue to push prices higher.
However, a bearish break below this Neckline region invalidates this bullish prediction and indicates weakness and a potential sell-off for ADA.
So when it comes to risk management for this bullish trade setup on ADA, our exact stoploss is below the $1.1000 previous low. It was at this price level the ADA price found support and bounced off the Neckline region on the 4-hour timeframe.
What Do We Think Will Happen Next?
Well right now, ADA just broke through this $1.1958 previous highs and is ranging around this region as we speak. But once this range is over we believe the bullish rally will kick back in.
Our target for this bullish move is the $1.3914 price level. This is Fibonacci extention target and we believe it is a high probability region for the ADA price to get to before this bullish rally faces any form of exhaustion in the coming days.
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