Cardano! Shelley! Or just a flop?
Buy the rumour, sell the news? Seems like this is what happened to Cardano, with a nice swing high, breaking out from its inverse HnS, together with much news on the explorer, partnerships, Shelley testnet etc.
Anyway, enough ranting about old news. So what is the chart telling us now?
I'm rather optimistic for the following reasons:
- RSI divergence (lower lows on price, but higher lows on RSI) is signalling some reversal pattern. A similar RSI divergence can be spotted at the peak of the Inverse Head.
- This coincides with ADA's last bottom at approx 800 sats
- 800 sats has proven as a critical level of support
- Yesterday's candle closed a 'bullish doji', indicating weakness in the bears to pushing price below the 800 sats range.
Regardless, if the bears fail to break this critical support level, likely we will proceed with an upward rally, i'd be looking at the 23% fib or 1080 sats range for the first exit point. Notice that this is a the support level, or the peak of the Inverse Shoulders. The next level ideally would fall around the 50% fib or the previous Inverse Neckline, or 1350 sats range.
Buy the rumour, sell the news? Seems like this is what happened to Cardano, with a nice swing high, breaking out from its inverse HnS, together with much news on the explorer, partnerships, Shelley testnet etc.
Anyway, enough ranting about old news. So what is the chart telling us now?
I'm rather optimistic for the following reasons:
- RSI divergence (lower lows on price, but higher lows on RSI) is signalling some reversal pattern. A similar RSI divergence can be spotted at the peak of the Inverse Head.
- This coincides with ADA's last bottom at approx 800 sats
- 800 sats has proven as a critical level of support
- Yesterday's candle closed a 'bullish doji', indicating weakness in the bears to pushing price below the 800 sats range.
Regardless, if the bears fail to break this critical support level, likely we will proceed with an upward rally, i'd be looking at the 23% fib or 1080 sats range for the first exit point. Notice that this is a the support level, or the peak of the Inverse Shoulders. The next level ideally would fall around the 50% fib or the previous Inverse Neckline, or 1350 sats range.
Comment:
looks like the support has been broken, the bias is downwards. expecting a retest of the support level (that now forms as resistance. Will need to watch for a rejection or a break to the upside. All alts have been bleeding badly (expect for a few short lived pumps here and there) for the past couple weeks, might we see some greedy alt buyers coming into the game?
