ADA - Time for a pullback but still looking good!
Cardano had an amazing run last week hitting all 3 of our targets in quick succession. We have since tapped into the liquidity around the supply zone and failed to close above, which subsequently resulted in a move back to the 61.8%FIB. We are bouncing back at the moment but have broken the trendline, which was respected the whole move up therefore we could possibly see a test of the liquidity above before resuming lower to the next demand area and possibly the 50%FIB. This does have the look of an ascending wedge that has already broken and is in the process of retesting before continuing its mover lower so keep that in mind.
Both RSI and MACD are showing bearish signs, RSI with a lower high and MACD crossing over bearish further indicating a pullback is likely. As such, area marked as demand zones should provide support for Cardano and could be used as areas to scale in long positions while keeping a close eye on Bitcoin.
The severity of any BTC pullback will most likely dictate how long ADA goes so don't be too quick to jump into positions at the first sight of a support touch.
As always, stay safe everyone!
Thanks guys!
Both RSI and MACD are showing bearish signs, RSI with a lower high and MACD crossing over bearish further indicating a pullback is likely. As such, area marked as demand zones should provide support for Cardano and could be used as areas to scale in long positions while keeping a close eye on Bitcoin.
The severity of any BTC pullback will most likely dictate how long ADA goes so don't be too quick to jump into positions at the first sight of a support touch.
As always, stay safe everyone!
Thanks guys!
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