Cardano Update: Reaching a Decision Point...More Mixed Signals

Cardano is getting interesting. The chart looks like it wants to break up. Wave 2 is consolidating right on top of the 0.618 fib level (golden ratio). This is normally where a bounce would be expected. I feel it's tie to bitcoin is holding it back.

(primary waves in blue, sub-waves in yellow)

The 4 hour MACD is completely flat at the moment. This can't last. A break up or down is imminent.

Which way will it break? There are a few conflicting signals...

The 1 day MACD looks like it's about to cross over into bearish territory, suggesting a possible break down.

The 4 hour MACD shows clear bullish divergence, suggesting a break up.

The 1 day chart shows the 8 day EMA (bottom), 21 (middle) and 55 (top) day EMA in a bearish order, and fanning out. However, looking at the daily candle, it looks to be forming a bullish inverted hammer. If it closes this way, it may indicate a trend reversal. More conflicting signals.

Zooming out, we can see major areas of resistance and support.

Zooming in, it's clear Cardano has been unable to penetrate the first ascending resistance line. It's approaching the apex where resistance and support meet. One or the other will fail. A strong break above may be a good entry point, with a target between 0.00002970 and 0.00003022. Likewise, a break below the support may be a good time to short, with a target between 0.00002210 and 0.00002125. This is not financial advice...just my personal opinion.

Let's see how it plays out over the next 24 hours.

BIAS
Short Term: Neutral
Longterm: Bullish

I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Thanks for stopping by.

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by Workin2005

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