ADA -- Descending wedge diverted into a horizontal triangle

Updated

RSI and MACD bullish divergences marked

The long descending wedge diverted into a nearly horizontal triangle. Will price follow a slow, sideways breakout for a rounded bottom? Or will price drop through the bottom of the newly forming horizontal triangle?

Note

Looks like one of my lines accidentally got deleted on the chart. The red "dump line" is the scenario where the horizontal triangle could breakdown. I meant to include another scenario where the price continues toward the downtrend line and then breaks up. A third very likely scenario is that we range in the 1200 - 1300 sat area while BTC redistributes.

And this chart shows the 1200 - 1300 sat supports.

Note

A nice gain in Cardano today. Can see here that price has broken out of the wedge/triangle and broken up through the 1325 resistance and flipped it to support. Can it consolidate here and then push up? The 1366 area has the potential for some resistance as well.

Note

In the altcoins in general today, even though there were some nice gains against BTC, I'm just not seeing any major buy volume. In the 60 min chart above, you can see that sell-off volume in the pull-back exactly mirrors the buy-in volume on the break-out. This is not to say ADA will not continue to move up, but it does mean that most buyers are covering themselves on the pullback.

Note

2 hr update chart

JR4020

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