Posted by Jonathan Morgan in Cardano , Crypto Price Predictions , Cryptocurrencies , Technical Analysis , – 26 Feb 2021 20:00
Cardano has easily outperformed almost all of its peers since November 2020.And given the fundamentals and imminent release of the Mary hard-fork, we should anticipate Cardano to outperform the market.I will even go as far to suggest that Cardano’s market cap will exceed Cardano’s at some point in 2021.But in the event of a correction in the broader market, there are some important levels to look at for adding to long positions and/or entering short positions.I’ve identified three of the zones based on the Volume Profile.
The Volume Profile is a form of VAP (Volume-At-Price) analysis in the broader type of technical analysis of volume.Standard volume bars are vertical and display the amount of something traded during a certain time interval.
Volume Profile is displayed horizontally and shows how much of something was traded at a particular price.The Volume Profile provides one of the most important pieces of technical analysis that we can have access to because it tells use, very clearly and honestly, where the market participants have been trading the most.
The result is powerful support and resistance levels.The current Volume Profile is a trading record starting on January 1st, 2021.Zone One
Zone One is the closest level – but third highest volume range – to where price is currently trading.The support range for Zone One exists between 0.08631 and 0.9562.
Conservative buy limit orders could be placed near 0.8631 while aggressive buy limit orders could be placed at 0.9562.On the short side of the equation I am waiting for a clear break of 0.8631 and then a retest of that break for a confirmation to short.A conservative short entry could be looked at if price closes below 0.8286.Zone Two
Zone Two is the lowest of the three zones.
What’s interesting about this level is the amount of time price spent inside of it.Only 4.5 trading days were traded within Zone Two.For Zone Two, a conservative buy limit at 0.6402 with an aggressive entry at 0.7108.Aggressive sell stops for a short could be placed a little below 0.6402.
Regarding any long trades from this zone, I’d be a little leary.Because of the short amount of time traded in this zone and the smaller size, its entirely possible that an sustained short from Zone One would sees flash crash through Zone Two all the way down to Zone Three.Zone Three
Zone Three is the final and largest volume zone.It also encompasses the most amount of time spent in a zone.
I have no interest in shorting below this zone, only taking longs with buy limits between 0.2937 and 0.3602.
Any short activity that would occur below this zone would more than likely be the result of some anomalous flash crash.Word to the wise: it always pays to place a few small buy limit orders at the extremes across multiple exchanges – you never know when you will get a fill and it can be a massively profitable event if you do get filled.Advertisement
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Jonathan Morgan.
