Van de Poppe Still Bullish On Cardano, But Warns About Correction Looming
Michaël van de Poppe a popular crypto analyst and pro-trader is taking a look at Cardano (ADA), which has recently performed tremendously and is currently the third largest crypto asset by market cap.
However, as ADA has soared and broken all-time highs, the trader warns that that there is a big chance that a significant corrective move is looming for Cardano.
“If you want to buy Cardano right now, the chances of a significant drop and drawdown on your entry based on the daily time frame is massive. This means that it can easily correct 25-30% and still be bullish. But you have been going down 25%, while potentially a better entry is granted on those lower levels.”
At the time of writing, Cardano is trading at $2.95. Van de Poppe says that to buy ADA now would be very risky, and that buying at or below $2.45 would offer a better risk-reward ratio.
“The actual pain is on the downside. Doesn’t mean that Cardano can’t keep on running. It can. But you have to wait or look for levels that are interesting to watch in order to actually take the entry…
I would be looking around $2.45 and second, I would be looking around the area that we have around $2.”
The crypto analyst identifies profit taking target levels at $4.40 and $6.50.
“What is the next target zone for Cardano based on the impulse waves? Well, obviously you can use the Fibonacci extension based on the previous impulse wave, through which you can target $4.75 and $6.80. You can also do it based on the recent run, and then you get to $4.40 and $6.50.”
ADA’s retracement signs can also be read on the Cardano/Bitcoin (ADA/BTC) chart, the trader points out.
“Is Cardano done with running at this point? I don’t believe that it is. But it shows that we might be getting such a corrective move at this point, given the fact that also the daily [time frame] on the Bitcoin pair [ADA/BTC] is not really granting any strength at all. So the scenario that we have here is showing us a potential corrective move.”
