Hey, friends hope you are well and welcome to the new update on Cardano. The ADA coin has turned very strong bullish comparatively to all the cryptocurrencies. so we will discuss how it completed this bullish setup and what it can do next.
last year in August 2019 I posted an article where I predicted that the price action of ADA has formed a bullish Shark pattern. As per the Fibonacci sequence of this pattern, I predicted that the price action should enter between $0.057 to $0.089. Finally the price actions started rally in December 2019 and produced more than 46% and dropped down again in the potential reversal zone and started another rally.
Comparison between the harmonic moves of Cardano and Bitcoin:
In March 2020 the price action of Cardano and the Bitcoin both formed different harmonic moves. The ADA coin formed a bullish butterfly pattern and as per the Fibonacci sequence of this pattern, I predicted that the price action should enter between 0.382 to 0.786 Fibonacci projection of A to D leg of this butterfly. Finally, the priceline turned bullish in April 2020 and produced more than 230% rally so far. At this time the price action is likely to break out the 0.786 Fibonacci projection area. If it will be broken out then it can start a more powerful bullish move than the previous one.
ADA butterfly pattern before execution:
ADA butterfly pattern after execution:
On the other hand, the Bitcoin also formed a bullish Gartley pattern on the monthly chart and entered the potential reversal zone in march 2020. And I predicted that as per the Fibonacci sequence of this pattern BTC should at least reach between $8654 to $12070. Finally, the price action turned bullish in April 2020 in entered in this zone. But so far it has produced almost 53% that is far less than the profit that has been produced by the Cardano.
Bitcoin Gartley pattern before execution:
Bitcoin Gartley pattern after execution:
The different indicators are signaling more bullish moves for ADA:
If we switch to the daily chart then we can observe that from June 27 up till now the Cardano made another bullish move of 26% but the BTC at the same time was moving down. If we take a look at the different indicators then on Cardano’s chart the MACD is strong bullish and the stochastic is also strong bullish but at this time on the Bitcoin chart the stochastic is bearish and MACD is weak bearish.
If we watch the simple moving averages with the time period of 25 50 100 and 200 on the daily chart. Then Cardano has crossed up them all. And it is moving above all these SMAs. The 25 SMA also has formed a bull cross with 50 SMA beneath the priceline and the 25 simple moving average is also working as really very strong support for the price action. But on the other hand, the price action of Bitcoin has broken down the 25 and 50 simple moving averages and the 25 simple moving average has formed a bear cross with the 50 simple moving average. Even though we have 100 and 200 simple moving averages strong supports below the price action. And the 100 SMA has also formed a bull cross with 200 simple moving average. But there is a big gap of almost $500 between the current priceline and the 100 simple moving average support. Therefore price action can be dropped up to this level at any time.
An up channel:
On the daily chart the price action of Cardano is also moving in up channel. For example if ADA will not break down or break out the support and resistance of this pattern and will continue to move within this channel then with the passage of time it will continue achieve more higher price levels.
We have been watching the correlation between the Cardano and Bitcoin and all other top alts up to April 2020. But after that up till now the ADA coin is likely to discontinue this correlation with the Bitcoin and all other top altcoins.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.