After topping out as expected due to an overextended weekly RSI, Cardano has a descision to make.
It is hanging exactly on the monthly support of around 1200 which it pierced several times right now with the result of being bought up again and again - even if it was just a little push to the upside.
But bulls seem to get weaker as we can't really see any descent upward momentum during the last few days.
On the other hand the chart is forming a nice daily bullflag. The weekly RSI cooled down a little and we can also detect a slight bullish divergence on the 4h now.
1200 may be a bullish stronghold. Already the bulls fetched some of the bears money of of this zone, preventing a strong and susatinable push to the downside several times.
But the bulls may still wait for some more liquidity, luring the bears in to a trap just to start the next weekly leg up afterwards.
If the 1200ish area breaks we could expect a nice drop down into the 900-800 area or even deeper.
Volatility is really low and the price is captured in a very small range over the weekend which hints to a possible bigger move soon.
Imho the point to make a big descision is right in front of us.
If it breaks to the upside i will wait until it hits the 1330 mark. On Binance, there is a bearish sell wall of around 30 BTC waiting there for days now, and it was even higher by the end of the last week.
And the next walls above it are already waiting for some more FOMO buyers. So i'd rather be careful. If it manages to break out of the daily flag, my first target would be around 1660
If it convincingly breaks the 1200 support zone i will begin to scale in at around 1170 trying to ride it down to the already mentioned 900-800 zone.
Where do you expect it to go this week?
It is hanging exactly on the monthly support of around 1200 which it pierced several times right now with the result of being bought up again and again - even if it was just a little push to the upside.
But bulls seem to get weaker as we can't really see any descent upward momentum during the last few days.
On the other hand the chart is forming a nice daily bullflag. The weekly RSI cooled down a little and we can also detect a slight bullish divergence on the 4h now.
1200 may be a bullish stronghold. Already the bulls fetched some of the bears money of of this zone, preventing a strong and susatinable push to the downside several times.
But the bulls may still wait for some more liquidity, luring the bears in to a trap just to start the next weekly leg up afterwards.
If the 1200ish area breaks we could expect a nice drop down into the 900-800 area or even deeper.
Volatility is really low and the price is captured in a very small range over the weekend which hints to a possible bigger move soon.
Imho the point to make a big descision is right in front of us.
If it breaks to the upside i will wait until it hits the 1330 mark. On Binance, there is a bearish sell wall of around 30 BTC waiting there for days now, and it was even higher by the end of the last week.
And the next walls above it are already waiting for some more FOMO buyers. So i'd rather be careful. If it manages to break out of the daily flag, my first target would be around 1660
If it convincingly breaks the 1200 support zone i will begin to scale in at around 1170 trying to ride it down to the already mentioned 900-800 zone.
Where do you expect it to go this week?
Nevertheless the bullflag on the macro scale is still valid.
I'd expect ADA to hold the 1200 zone. If not i would consider a descent short trade.