Welcome once again to another wonderful episode in the crypto Academy community. Before I present my homework post, I would like to acknowledge the professors and the crypto Academy community for making such an educative lecture possible. Today the topic is all about trading.
Cardano Trading
Cardano is one of the highly-rated cryptocurrencies. The Cardano was a powerful blockchain that was initiated in 2017 and named after Gerolamo Cardano. The project was launched to solve blockchain problems like scalability, security, High transaction fees, etc.
The Cardano project has been very useful for quite a time now and still performing very well. Just like many other blockchain networks, the Cardano blockchain has its native token which was was named after the famous mathematician Ada Lovelace.
Due to its numerous used cases and how efficient the blockchain has performed over the past few years, the ADA token has always been ranked among the top altcoins.
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From the screenshot above, we can see the current market price of ADA token, the current market capitalization, and the current cryptocurrencies rankings as well. The ADA is ranked among cryptocurrencies with high market capitalization.
Being one of the most popular crypto assets, it is currently on most of the exchange platforms to be traded. If not available on all the exchange platforms, it is available on 90% of the exchange platforms.
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Being one of the most popular crypto assets, it is currently on most of the exchange platforms to be traded. If not available on all the exchange platforms, it is available on 90% of the exchange platforms.
Techinical analysis for Cardano
Here we would be performing a complete analysis on ADA/USDT Since price action entails all the technical tools for analysis, I would use the concept of price action in my analysis
Analysis on the 4-hour timeframe
From the chart above, the price was in a strong bearish trend until the reversal at the support level. When the price reached the support level, the price broke below the support to fake the early buyers out.
However, after the little fakeouts, the price retraced back to break both the support and the bearish trendline to show a clear reversal confirmation.
After the breakout, the market needs to communicate something different. But since this is the beginning of the breakout, swing traders can confidently take the buys but scalpers like us needs something else from the smaller timeframe to make some profits.
This is good setup for swing traders.
Analysis on the 2-hour timeframe
I placed the MACD indicator on the 2-hour timeframe chart. Here, the MACD is communicating a bearish trend.
The blue oscillating like has crosses below the red oscillating line which signifies a bearish trend.
However, the cross happened above the 0 line which also means the bearish signal could be a fakeout according to the rules of MACD crossovers.
Here we can take some quick scalp sells and leave the market since our criteria has met strongly.
Analysis on the 30-mins timeframe
Since we want to take some trades on the smaller timeframe, we use the 30 mins timeframe chart. Here, we identify any strategy possible.
We have located some double top pattern at the top and hence we take our sell trade.
The RSI also stays below the 50 line. That’s a further confirmation of the sell signal.
- Set a stop loss just above the double top resistance line and place a corresponding take profit with good risk management.
Transaction details
Screenshot from my Exness account
CONCLUSION
Trading is now the order of the day. Traders in the crypto ecosystem use numerous strategies to executed trades. However, I recommend everyone to master some 2 or three strategies which could be very profitable. Using different strategies every time would cause more harm than good.
Don't forget to use good risk management in trading. Always make sure your risk-reward ratio favors the profit. Do not risk money you are not willing to lose. Better still you can still use the 1% rule to reduce your risk.