In our previous ADA analysis This Key Pattern Predicts ADA Could Be The Next Big Thing In Crypto! we talked about the massive Ending Diagonal Pattern currently forming on the ADA/USDT Daily timeframe, what it means for the Altcoin price in the coming days, and the key indicators that support this pattern.
This analysis is a follow up to that previous one, and in this Altcoin write up we will be talking about how we plan to take advantage of this coming reversal, the best regions to enter a trade, and the key levels we will be keeping our eye on in the coming weeks.
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Key Levels To Watch Out For On ADA!
- The Ending Diagonal Pattern:
The first key levels to watch out for are the channels that make up the Ending Diagonal Pattern. ADA is still trading in this pattern and needs to break out of it first before any bullish rally can begin.
As far as the Altcoin price continues to trade within this key pattern, we will stand aside and wait for a bullish breakout to end the bearish trend and confirm our bullish bias on the crypto pair.
The bullish breakout could look like the image above and would be the best indication/price confirmation that we need to become bullish on Cardano.
- The $1.0210 Horizontal Level
The $1.0210 horizontal level has played a very key role in the history of Cardano and might continue to do so in the coming weeks and months. This makes it very important for us to consider it when we are looking for a bullish trade setup.
Right now, that $1.0210 level is acting as key resistance to any ADA bullish price scenario that might play out in the future. This makes it very important for the Cardano price to break back above it on the Daily timeframe for us to be bullish again.
A failure to break back above this $1.0210 price level could see us test it as key resistance, range around there for a while, and then continue to sell-off in the coming weeks.
Bringing It All Together And Finding A Trade
For us to place a buy trade on Cardano, we want to see the Altcoin price break out of the Ending Diagonal Pattern, and close above the $1.0210 horizontal level on the Daily timeframe.
Once these two things play out, we can then enter our buy trade because we now have our bullish confirmations that the next bull run in Cardano has started and we are well-positioned to ride the move to new ATHs!
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