Cardano (ADA) in a triangle, who would prevail.... bull or bear?

Cardano (ADA) in a triangle, who would prevail.... bull or bear?

By Cryptonite | Cryptonite | 7 May 2020


 

 

Hello to everybody, today i want to take a look at Cardano chart the ticker is ADA as you know, this is one of the most capitalized crypto on the market, is also relatively new, I am feeling that in the future this cryptocurrency will be extremely successful in term of usage and of course also in term of price.

 

Cardano chart short term

 

Anyway what we are looking right now is the movement in the short to medium term, as any other crypto asset the valuation of Cardano was slashed at the end of February and touched a minimum at  march 12 at 0,01773 Dollar, since then ADA start a very nice positive trend that was incredibly regular.

Around 20 of April the trend accelerated and draw a steep new uptrend, this movement hit a maximum at around 0,0544 Dollar before make a correction to lower valuations, at this point the currency is facing a battle between bulls and bears and we can start to think of some support (if the trend turn negative) or some resistance in case Cardano will be able to get back on track.

We may notice that the first set of supports are at 0,045 and 0,046 Dollars, in the eventuality that those level will breakout we can expect another support at 0,041 Dollar, under this level we would see a breakout of the actual up trend and maybe a lot more of volatility with the next support at 0,033 Dollar, later in the long term view we will see that the volatility could arrive also from a triangle that is drawing right now.

If ADA will be able to keep running we see resistance levels at 0,05 and 0,052 Dollar and also at 0,062 Dollar, this chart seems well positioned also to try to catch the maximum of the 3 month at around 0,071 Dollar.

 

 

Long Term View

Cardano  chart

 

In this image we clearly see a triangle forming and almost completed, this kind of figure is easy to identify but also a bit unpredictable, as the valuation approach the end of the triangle there is a high probability that the breakout will be violent with an increasing of volatility.

The issue with the triangle is that we are at the top of the figure than the valuation could be dumped till near the lower side of the triangle, anyway no worries…. The exit is not sure at all, I personally think that we can see a correction and when the relative strength (RSI) would lower and a bit more far from a “iperbuy” situation Cardano could take the momentum for brake the upper line of the triangle.

 



Cryptonite
Cryptonite

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