ADA Explosive move coming soon!!?

7 thg 10, 2021

Cardano on its USD pair has been getting beat down a little bit but is definitely still showing strength and trading on the upper side of this descending triangle which is technically a bearish pattern but i would be surprised if this played out bearish. Looking at some very positive notes coming from the bollinger bands, first of all we have pushed up and above the midline on the bands which now acts as support, and we are getting pretty close to that top band with us wicking off of it earlier today, one big test we are currently facing is the 0.6 FIB level which we have failed to regain for quite some time, but mind you we were also facing resistance from the bollinger bands midline and now that we have that regained taking out the 0.6 FIB level could be much easier! Keep in mind we also face resistance coming from the top of this descending triangle but if we do grab onto that top band we could start flying! Last thing on the BB we notice that they are squeezing down hard on price action and almost everytime this happens we see an explosive move to either the upside or downside. Now lets take a look at the squeeze momentum indicator, this is where things are starting to look very fun, we are getting our first green bar on the histogram and our first black cross, this signals a bullish squeeze and we are looking for this to continue building up bull momentum along the way, we want to see bigger green bars each day showing us the momentum is there along with the black crosses, and then at some point we will start to receive grey crosses signaling the squeeze release which usually sends us on a very nice run to the upside, so definitely keep an eye our for those grey crosses and continued growth coming from our green bars! Now the ADX or average directional index, we are actually starting to turn a little further to the downside which isn't a huge deal for now but what we need to see and want to see if we keep seeing a decline is us catching that green support level slightly below us and get a nice bounce and reversal, this is something we should watch with a close eye. My thoughts are that we indeed will bounce off this support level and i feel we are only showing downside on the ADX due to us trading slightly downwards in this descending triangle, if we see a breakout to the upside that will definitely change the ADX and we will be in the midst of a reversal on this index! Not financial advice just my opinion!