✴️ Cardano, Top Or No Top?

Look at the difference between these two patterns:

1) The first one showed up late Nov/early Dec and is a bullish pattern, a triangle as continuation.

2) The second is current and is a bearish pattern, a rounded top.

Cardano (ADAUSDT) grew by 209% within 5-6 months.
While many people are ready for mORE, a correction can develop here without problem but there can also be additional growth.

The volume behaviour supports additional growth as it continued to rise all through December 9.

The top pattern though is bearish and the RSI trending lower as well, so we have some mixed signals.

Currently, prices trade below EMA10 but this has not being confirmed yet.

When we look around, many pairs are bearish and also closed below EMA10/EMA21, closed bearish weekly, peaked and some are trading several levels lower already. Since the market is connected, we can expect Cardano to follow the same pattern even if it produces a last jump.

Think of Avalanche (AVAX), Tellor (TRB) and Injective Protocol (INJ).
You can see them producing one final jump just to enter their corrective phase.

Still not sure?
That's ok!

Just be cautious and prepare for all scenarios... Prepare for the worst, hope for the best.

The correction should be short-lived lasting at maximum a few months. Once the correction is over, we get major bullish growth.

Namaste.

Bình luận:

For those wondering, the same analysis still applies today.

The same peak (resistance) remains intact as well as the top pattern.

Cardano (ADAUSDT) bearish potential still valid.

Bình luận:

Cardano failed to break the last high, it fell short by 31 satoshis.
Trading volume continues to decrease....

If there is a drop here it works as bearish confirmation.

The chart is self-explanatory, ADAUSDT needs to move above the green line (resistance) for the bulls to gain back control of the chart.

Bình luận:

Cardano moved today below EMA50, the RSI is now full bearish.

The weekly timeframe leaves no room for doubt, 3 weeks sideways led to a breakout this week:

Here is the weekly RSI:

After being "overbought", it is clearly trending lower.

Bình luận:

Yesterdays' peak was the B wave of an ABC correction. The C wave can take prices much lower.

Bình luận:

We are about to reach the first target:

A bounce can happen followed by sideways once this level is hit before more lows. Be aware.

Namaste.