Detailed analysis of ADA (Cardano) with the current price of 1.19 USD
Cardano (ADA)
1. Technical Analysis
Support and Resistance Levels
• Strong Support:
• 1.00 USD: This is an important psychological support level and the recent low.
• 1.10 USD: The nearest support level.
• Strong Resistance:
• 1.30 USD: The nearest resistance level, needs to be broken to rise higher.
• 1.50 USD: The next resistance level, marking the potential for a breakout in the medium term.
2. When to buy ADA?
• Short term:
• Buy at support levels around 1.10 USD or when the price has a slight correction.
• Buy when the price breaks the resistance level of 1.30 USD with high trading volume.
• Medium and long term:
• Gradually buy in the range of 1.00-1.10 USD to accumulate.
• Wait for ADA's price to correct below 1.00 USD if the market experiences strong volatility.
4. When to sell ADA?
• Short term:
• Sell at the resistance level near 1.30 USD to take short-term profits.
• Sell an additional portion at 1.50 USD if ADA continues to rise.
• Medium and long term:
• Take partial profits at levels 1.50 USD, 2.00 USD, and 2.50 USD depending on market developments.
• Hold a portion of ADA to take advantage of long-term growth potential as Cardano expands its ecosystem.
Risk Management Strategy
• Stop Loss:
• Short term: Stop loss if the price drops below 1.05 USD.
• Medium and long term: Stop loss at 0.90 USD if the market weakens.
• Capital Allocation:
• Only use 2-5% of total capital for each trade.
• Divide capital into multiple parts to buy at different price levels, minimizing risk.