ADA/USD (Cardano) Elliott Wave Analysis & Trading Strategy

ADA/USD Daily Chart Analysis

ADAUSD Elliott Wave Technical Analysis

Function: Counter Trend

Mode: Corrective

Structure: Double Corrective

Position: Wave ((Y))

Next Higher Degree Direction: Bullish if price remains above 0.506

Invalidation Level: 0.506

ADA/USD Technical Details

Cardano (ADAUSD) is currently forming a Corrective Wave II, suggesting a temporary pullback before a potential uptrend continuation. The structure follows a double corrective pattern (W)-(X)-(Y), with key Fibonacci retracement support near 0.535 (0.786 Fib Level). The long-term bullish outlook remains intact as long as price does not break below 0.506.

ADA/USD Daily Chart Trading Strategy

Buy Strategy (Long Position)

• Enter a long position if the price reverses from the 0.535 support level.
• Target the 1.327 zone for potential profit-taking.

Risk Management

• Wave Cancellation Level: 0.506

• If price drops below 0.506, the Elliott Wave structure becomes invalid, requiring a reassessment of the market trend.

ADA/USD (Cardano) Elliott Wave Analysis - TradingLounge 4H

ADA/USD 4-Hour Chart Analysis

ADAUSD Elliott Wave Technical Overview

Function: Counter Trend

Mode: Corrective

Structure: Double Corrective

Position: Wave ((Y))

Next Higher Degree Direction: Bullish if price remains above 0.506

Invalidation Level: 0.506

ADA/USD Technical Details

Cardano (ADAUSD) remains within Corrective Wave II, forming a double corrective pattern (W)-(X)-(Y). The key support level is near 0.535 (0.786 Fibonacci Retracement), where a potential price reversal may occur. The bullish trend remains intact unless ADAUSD breaks below 0.506.

ADA/USD 4-Hour Chart Trading Strategy

Buy Strategy (Long Position)

• Entry Point: If price finds support at 0.535, consider a long position.
• Profit Target: Look to take profits around the 1.327 resistance level.

Risk Management

• Wave Cancellation Level: 0.506

• If ADAUSD falls below 0.506, the current Elliott Wave structure would be invalid, signaling a need to reconsider trading positions.

Technical Analyst: Kittiampon Somboonsod

Source: visit Tradinglounge.com and learn From the Experts Join TradingLounge Here 

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Conclusion

Cardano (ADAUSD) is in a corrective phase, but its long-term bullish trend remains intact as long as it stays above 0.506. Traders can consider long positions from the 0.535 support level, aiming for profits near 1.327, while maintaining strict risk management to avoid invalid setups.

For more Elliott Wave insights and market updates, keep monitoring ADAUSD price action. 🚀