CardanoLong
ADA/usd Weekly - Big Moves Ahead
Updated
Cardano (ADA) just closed above its descending channel.
This week we need to watch for it to close above the channel again to confirm this breakout.
Closing October 8th above 25 cents is the key.
In the orange circles in September 2023, the rsi and stoch rsi may hold clues for an upcoming bullish move.
The rsi broke above its moving average, and the stoch crossed above the 20 level.
Looking in the past , when rsi and stoch had these moves, price had large gains.
In January of 2023 (red circles) price broke above its descending channel, the rsi crossed above its moving average and the stoch broke above the 20 level.
When these 3 moves occurred, price rose 40%.
And looking further back into March and July of 2022, there were similar clues in the rsi and stoch rsi. (White and blue circles)
Even though prices were in the lower half of the descending triangle, the 2 oscillators indicated price was about to rise.
When the rsi crossed above its moving average, and stoch crossed above the 20 level, these two moves resulted in 57% and 34% increases in price.
This week we need to watch for it to close above the channel again to confirm this breakout.
Closing October 8th above 25 cents is the key.
In the orange circles in September 2023, the rsi and stoch rsi may hold clues for an upcoming bullish move.
The rsi broke above its moving average, and the stoch crossed above the 20 level.
Looking in the past , when rsi and stoch had these moves, price had large gains.
In January of 2023 (red circles) price broke above its descending channel, the rsi crossed above its moving average and the stoch broke above the 20 level.
When these 3 moves occurred, price rose 40%.
And looking further back into March and July of 2022, there were similar clues in the rsi and stoch rsi. (White and blue circles)
Even though prices were in the lower half of the descending triangle, the 2 oscillators indicated price was about to rise.
When the rsi crossed above its moving average, and stoch crossed above the 20 level, these two moves resulted in 57% and 34% increases in price.
Trade active
Price closed the week of October 2nd at 0.256 cents, and found support on top of the descending channel.Price didn't dip back into the channel but the indicators are showing signs of weakness:
- The rsi has dipped below its moving average, but the week isn't over yet. We will have to wait till Sunday the 16th of October, to verify this move.
- Also the stochastic rsi is starting to curve a little. But just like the rsi, we need to wait till Sunday to see how the week closes.
I'm watching price, and seeing if it can continue holding support on the descending channel.
If price closes below 0.24 cents by Sunday, this would put ADA back into its channel. Not ideal.
Note
ADA broke above and confirmed support on the descending parallel channel. (white channel)
This confirmation led to a 166% increase in 77 days. (25 cents to 68 cents)
In the left side chart, you can see the parabolic break up from the channel, and now possibly creating a bull flag. (purple parallel channel)
Looking at the right side chart, I placed the Fibonacci Retracement over ADA's weekly chart.
Where can ADA retrace down to?
The clues may be within the Fibonacci and its golden pocket:
38% retracement = 45 cents
50% retracement = 40 cents
62% retracement = 35 cents
If you combine the Fibonacci and Stochastic RSI (bottom indicator in the left chart) this will give you a general idea to which retracement level the price may fall to.
If this current move is truly a bull flag, expect a parabolic rise when price breaks above the purple channel.
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