Given that the ongoing correction has extended longer than expected, it appears that buyers have not yet fully entered the market. This current correction falls into the category of complex double corrections, which are often seen in mature or consolidating markets.
From a structural perspective, Cardano (ADA) seems to be forming a double correction, connected by an X-wave, linking the two corrective patterns together. The second correction, in particular, appears to take the form of a triangle, and we are currently observing Wave E of this triangle. Once Wave E completes, we can reasonably expect this double correction to conclude, setting the stage for a potential bullish move in Cardano.
For proper risk management, we have identified two entry zones, where positions should ideally be entered using a DCA (Dollar-Cost Averaging) strategy. This approach helps reduce risk and ensures better average entry prices during ongoing corrective moves.
⚠️ Trade management guidelines:
At Target 1, it is recommended to secure partial profits.
After that, move your stop loss to breakeven (entry level) to protect capital while letting the trade run.
❌ Invalidation rule:
A daily candle closing below the invalidation level will invalidate this analysis and should trigger a review of your position.
This setup is based on price structure, wave theory, and risk management principles, not speculation. Discipline, patience, and adherence to the outlined rules will be crucial for capitalizing on this potential move.
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This is not a trade setup, as it has no precise stop-loss, stop, or target. I do not publish my trade setups here.
✅ Trade here on $ADA
