When we look at Cardano currently in the usual timeframes like the Daily or Weekly, we cannot see much of a clear price action, especially on the Daily.
But once we change that up to the 3D Chart, we can see that the erratic price action disappears, and actually we start to see the clear opens & closes marking the clear tops at 1,30.
To the downside, we can clearly see that we are ascending, which leads to a very nice Ascending Triangle, connecting the wicks. If we leave the wicks out, this still gives us a nice Equilibrium range between 1,30 and 1,10. (see the white line). So in case of a bear break, this line is gonna be important to take out.
The probability of an Ascending Triangle breaking bullish is ofc. higher. The preceding price action is a huge bull pole since the break from 30 cents, we're going sideways for almost two months now. Therefore, a bull break has the potential to go towards 1,70 and above with >20% unleveraged.
Of course it's crucial what grandpa Bitcoin will do from here. Funny enough, Bitcoin too on the Weekly is in an ascending pattern, albeit inside a upward tilted channel.
In the direct correlation to Bitcoin ADA/BTC, we're in a very erratic Bull Pennant:
=> We have been in Bull Pennants against Bitcoin before, and have actually broken them bearish if you go back in time. So there is no automation for a bullish continuation towards Bitcoin. Even if we do that, it doesn't mean that in USD we will be going up. So even in case of a bullish break in ADA/BTC, in USD we could be going lower, but less than BTC. If we break higher obv., we will be outpacing BTC to the upside in USD.
Conclusion: All in all, the patterns are tilted towards bullish continuation both in Cardano & crypto in general. The only problem is, we're still highly overbought on the RSI if we look at bigger timeframes. 3D on ADA has cooled down enough, but the Weekly is still completely in hyperbole. Bitcoin has cooled down from hugely overbought, to still overbought: Not really ideal for a long term continuation. Esp. if we get a weak break & halt at the upper side of the upward channel with BTC at around $66k, the current divergence could be very alarming. And as we know, the high correlation to BTC almost certainly determines the fate of the smaller siblings.
The best case scenario for a longer term bullish continuation in BTC would be a much more prolonged sideways range first -which we will not get if we break higher now.
But once we change that up to the 3D Chart, we can see that the erratic price action disappears, and actually we start to see the clear opens & closes marking the clear tops at 1,30.
To the downside, we can clearly see that we are ascending, which leads to a very nice Ascending Triangle, connecting the wicks. If we leave the wicks out, this still gives us a nice Equilibrium range between 1,30 and 1,10. (see the white line). So in case of a bear break, this line is gonna be important to take out.
The probability of an Ascending Triangle breaking bullish is ofc. higher. The preceding price action is a huge bull pole since the break from 30 cents, we're going sideways for almost two months now. Therefore, a bull break has the potential to go towards 1,70 and above with >20% unleveraged.
Of course it's crucial what grandpa Bitcoin will do from here. Funny enough, Bitcoin too on the Weekly is in an ascending pattern, albeit inside a upward tilted channel.
In the direct correlation to Bitcoin ADA/BTC, we're in a very erratic Bull Pennant:
=> We have been in Bull Pennants against Bitcoin before, and have actually broken them bearish if you go back in time. So there is no automation for a bullish continuation towards Bitcoin. Even if we do that, it doesn't mean that in USD we will be going up. So even in case of a bullish break in ADA/BTC, in USD we could be going lower, but less than BTC. If we break higher obv., we will be outpacing BTC to the upside in USD.
Conclusion: All in all, the patterns are tilted towards bullish continuation both in Cardano & crypto in general. The only problem is, we're still highly overbought on the RSI if we look at bigger timeframes. 3D on ADA has cooled down enough, but the Weekly is still completely in hyperbole. Bitcoin has cooled down from hugely overbought, to still overbought: Not really ideal for a long term continuation. Esp. if we get a weak break & halt at the upper side of the upward channel with BTC at around $66k, the current divergence could be very alarming. And as we know, the high correlation to BTC almost certainly determines the fate of the smaller siblings.
The best case scenario for a longer term bullish continuation in BTC would be a much more prolonged sideways range first -which we will not get if we break higher now.
