Cardano price analysis: Bears not letting up
Previous analysis calling for a short (sell) trade entry for Cardano can be found in the link provided below. Cardano (ADABTC) and its current bearish trend is explored in this analysis on the 4 hr time frame using one of the best tools for market analysis…trendline.
Numbers marked on the chart are discussed in the commentary below:
(1) Bearish trendline on the 4hr tf chart of Cardano from May 13, 2018 that is active till current date.
(2) Trendline (#1) is given a greater weight in this analysis than trendline (#2) that commenced on July 18, 2018. Trendline #2 also coincides with the upper region of resistance for Cardano at ~0.00001718, suggesting that it is a price level to watch once bullish momentum returns.
(3) The relative strength index (RSI) as shown here indicates a bullish divergence in Cardano with the RSI failing to confirm the new low in price currently. The bullish divergence does not automatically mean reversal of the trend, but a caution signal.
Above all, this analysis considers long (buy) entry orders on a breakout above trendline #1 more conservative than long positions entered on a breakout above trendline #2. A break out above trendline #2 and also above ~0.00001718 is even better for strategies that anticipate a break out above trendline #1 and more potential upside.
Numbers marked on the chart are discussed in the commentary below:
(1) Bearish trendline on the 4hr tf chart of Cardano from May 13, 2018 that is active till current date.
(2) Trendline (#1) is given a greater weight in this analysis than trendline (#2) that commenced on July 18, 2018. Trendline #2 also coincides with the upper region of resistance for Cardano at ~0.00001718, suggesting that it is a price level to watch once bullish momentum returns.
(3) The relative strength index (RSI) as shown here indicates a bullish divergence in Cardano with the RSI failing to confirm the new low in price currently. The bullish divergence does not automatically mean reversal of the trend, but a caution signal.
Above all, this analysis considers long (buy) entry orders on a breakout above trendline #1 more conservative than long positions entered on a breakout above trendline #2. A break out above trendline #2 and also above ~0.00001718 is even better for strategies that anticipate a break out above trendline #1 and more potential upside.
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