ADA will drop below 2, target at 1.60 for KRAKEN: ADAUSD by Ceddy86
The main view of this business idea is on the 2 hour chart. Cryptocurrency Cardano (ADA) has been in a remote move or rectangular pattern since late September 2021. The cryptocurrency is expected to test the 2 assistance level and break down towards 1.60. Failure of this move would be seen if the ADA were to rise above 2.35.
Longer term Daily chart The ADA is in correction mode, with a downward trend. If it falls below price level 2, it can go as low as 0.71, 67% lower from current levels. A negation of this movement will be observed if the ADA rises above 2.35.
Technical indicators
ADA is currently below its short (50-MA), medium (100-MA) and long (200-MA) values fractal moving averages. There were negative crosses on ADs, signaling a downtrend . The RSI is less than 50 and moves downwards while the KST is in sale mode. The key will be the breakout below price level 2 to determine the lower leg.
Recommendation
The recommendation will be to be short in the market, with a stop loss at 2.35 and a target of 1.60. This produces a risk / reward ratio of 2.31.
Disclaimer
The views expressed are my own and do not represent those of my employers and business partners. People acting in accordance with these recommendations do so at their own risk. These recommendations do not constitute a solicitation to buy or sell but are purely for discussion purposes. At the time of publication, I have a short position on ADA.
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