Cardano is sitting on its major long term trend line right now on the 6 hour time frame,with a very oversold RSI and the TD sequential indicator just hit a 9 count, which is a short term buy signal (6-24 hours). Bitcoin is also looking ready for a bounce after a major selloff pushed the price into oversold territory on most time frames. The combination of these two things has me watching ADA closely to see if it will push back to the upper boundary of the gigantic triangle that's formed, and if it does, the next question is whether the momentum will carry the price upwards out of the triangle for a bullish breakout.
Takeaway: remaining neutral but watching closely to see where the price action goes. Further bitcoin decline could drive prices downward breaking support leading to a large selloff, but a bitcoin bounce or sideways action might set ADA up for a nice move to the upside as its already marked down considerably and reaching the end of its falling wedge pattern, which is statistically more bullish than bearish.
Takeaway: remaining neutral but watching closely to see where the price action goes. Further bitcoin decline could drive prices downward breaking support leading to a large selloff, but a bitcoin bounce or sideways action might set ADA up for a nice move to the upside as its already marked down considerably and reaching the end of its falling wedge pattern, which is statistically more bullish than bearish.
Note
Here's the wedge I'm looking at from the 1h time frame. There's a divergence happening on the squeeze momentum indicator, in line with a bounce from the low RSI of 30 and the lower boundary of the falling wedge. Watch the upper boundary for resistance.. a breakout would set a target of 2750 sats.Note
had a little fakeout to the downside on lower BTC prices, with a quick recovery back above the boundary line and substantial follow through. Looking solid so far. Expecting a consolidation period around 2630 sats before continuation (being mindful of BTC's bearish momentum).
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.