#CryptoBuyZone #BuyTheDip $ADA
Cardano (ADA) double bottom setup, buy zones, and trade entry strategy to catch the altcoin wave:
Cardano (ADA) Double Bottom Setup and Buy Zones
1. Chart Pattern: Weekly Double Bottom
ADA’s weekly chart shows two clear lows around $0.66, forming a classic double bottom (W pattern).
This suggests strong support at $0.66 and a potential bullish reversal if price breaks above the neckline at $0.70.
2. RSI Divergence
The RSI indicator on weekly and daily charts shows bullish divergence — price makes the same lows but RSI forms higher lows.
This divergence often signals weakening selling momentum and a likely upside reversal.
Where to Buy? Entry Zones
ZoneDescriptionRisk Level$0.66 – $0.68Double bottom support zone (low risk entry)Low$0.69 – $0.70Neckline breakout zone (confirmation buy)MediumAbove $0.70Confirmed breakout, momentum entryLower risk
Suggested Trade Strategy
Aggressive Entry:
Enter near the support zone $0.66–$0.68 while RSI is showing bullish divergence. Use tight stop-loss just below $0.65 to limit downside.
Conservative Entry:
Wait for price to break and close above $0.70 on weekly or daily charts with strong volume. This confirms the double bottom breakout and signals bullish momentum.
Potential Price Targets
First target: $0.80 — near recent resistance and psychological round number.
Second target: $1.00 — major resistance and possible next wave top.
How to Set Up Your Trade on Binance
Chart Setup:
Open ADA/USDT chart on Binance.
Use weekly and daily timeframes for entry confirmation.
Add RSI (14) indicator to watch for divergence and oversold conditions.
Draw horizontal support at $0.66 and neckline resistance at $0.70.
Buy Orders:
Place a limit buy order between $0.66–$0.68 if you want to catch the bounce early.
Alternatively, set a buy stop order just above $0.70 to catch breakout momentum.
Stop Loss:
For low zone entry, stop loss just below $0.65.
For breakout entry, stop loss slightly below $0.70.
Take Profit:
Partial profit at $0.80.
Next profit target at $1.00 or trail stops to lock in gains.
Additional Tips
Watch for volume surge on breakout above $0.70 — volume confirms strength.
Confirm RSI climbing back above 50 for momentum.
Use dollar-cost averaging to reduce risk if unsure about timing.
Keep an eye on overall altcoin market trends — altcoin seasons usually amplify moves.