Cardano (ADA) is showing bullish signs on its weekly timeframe, while trading within a neutral pattern with a bearish daily.
ADA has been falling ever since it hit an all-time high of $3.10 in August 2021. ADA fell to $0.40 in May 2022. The price then bounced, but failed to initiate a significant upward move.
The daily chart shows that the price has been trading inside a symmetrical triangle since the May 12 low. Such triangles are considered neutral patterns, meaning both a breakout and a collapse remain valid possibilities.
However, the triangle emerges after a downward move, so an eventual breakout would be more likely. Also, the daily RSI has broken out of an ascending support line (green line) and is currently below 50. So, unlike the weekly time frame, which gives a bullish outlook, the daily time frame is bearish.
Due to the presence of the triangle, the most probable number of waves indicates that the price is in the fourth (black) wave of a five-wave downward move that started from an all-time high.
A drop below $0.43 (red line) will confirm this number, while a rise above $0.59 (green line) will invalidate it.
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