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Cardano short-term price analysis: 16 September

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Cardano short-term price analysis: September 16

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Cardano has dropped out of its bearish pattern, however, its journey higher starts now. With rising bitcoin prices and dominance, there might an altcoin sell-off soon, which might hamper altcoins’ performance.

Cardano 4-hour chart

Source: ADAUSD TradingView

The chart shows the price of Cardano breaking promptly from the rising wedge. After testing the support at $0.09172079, an impulse wave can be expected from ADA. This is the rationale behind the long-position that will be taken for ADA.

There are two targets for the current long position, the first at $0.10452, which would mean a price surge of 14%; the second target is at $0.1128 or a 22.54% surge.

Opening a long position at the aforementioned support [$0.0917]  with stop loss at $0.08558 would yield an R of 2.09. With the same entry and stop-loss, but with target 2, the R would be 3.37.


Either way, a long position is the best bet considering the uncertain situations. Adding more support to this long position is the OBV indicator which has formed a higher low while the price has formed a lower low, which is a clear bullish divergence.

Additionally, the Stochastic RSI is in the oversold zone is a bullish crossover waiting to exit the oversold zone.

Altcoin Dilemma

Source: TradingView

Furthermore, the altcoin dominance is on the drop in the last 2 months while bitcoin’s dominance is rising. A crossover would spell disaster for altcoins, including Cardano. A lot of low cap altcoins suffered a drop in the price yesterday and it might be time for high cap altcoins to spill some blood as well.

Hence, care should be taken with trailing stop-loss or any other method if one longs altcoins.


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Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.
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