• Cardano’s price function flashes exceptional oversold conditions that its peers.
  • The alt awaits massive bullish reversal as Cardano trapped late short sellers.
  • ADA has an incoming long-entry opportunity.

Cardano (ADA) might be at the start of a move that would lead the overall crypto market on a lucrative rally within the coming six months. Cardano seems poised for a colossal gain after spending most of 2021 Q4 on downtrends.

ADA Price Prints Powerful Bullish Pattern on Point & Figure Chart

Fake Out is among the most reliable and robust Point & Figure trade formations. The pattern forms after multiple bottoms launch a breakout, moving at least, but not over two Os beneath the ‘multiple’ bottom. Also, Xs should form a reversal column for the pattern. Lastly, the long entry stands at 50 percent of the previous O column range.

Cardano’s hypothetical long entry is a $2.25 profit target, $1.10 stop loss, and $1.30 buy stop order. The Vertical Profit Target in Point & Figure presents the profit target. The potential trade pattern is 4.75 risk/reward trade formation with a disguised profit aim of 79% from entry. A 3-box trailing stop may help safeguard any profit.

Though the upside narrative, downside risks remain for ADA. For instance, any weekly or daily close beneath the value area of $1.0 would catalyze a sudden fall through a thing volume profile towards the following high volume node and support cluster at $0.40.

In such a case, BTC would likely be hovering around the $30,000 mark and Ethereum at the price range of $2,250. Nevertheless, the current zero-column moving low towards $1.0 will ruin ADA’s hypothetical long setup.

For now, ADA seems to boast all it takes to rise past $2. That is after the alternative coin trapped short bears. Market players can await massive upside rallies for the altcoin. The bullishness in the overall crypto space would likely support the upward narrative for Cardano. That means ADA will depend on the broad market outlook for its upcoming trends.

What are your thoughts on ADA’s anticipated upside move? You can use the comment section below to leave your reply.