Cardano symmetric triangle continuation pattern
Cardano is forming a symmetrical triangle continuation pattern, which, if it sees confirmation, will likely produce a 5-6% gain in price.
The pattern consists of a breakout, followed by a period of consolidation, in which there are at least 3 touches of a lower boundary line, 2 touches on the upper line to form the triangle. There is a parallel channel line drawn matching the angle of the lower boundary line to indicate the path of the growth pattern following confirmation of the bullish breakout, and the move is measured by the widest part of the triangle, which will be repeated from the breakout point. Confirmation requires at least 1 candle closing above the trend line, preferably more, and there should be increasing volume.
The bearish case would be if the symmetrical triangle pattern breaks the lower boundary line and closes at least one candle below the line, and the measured move would repeat to the downside.
Wait for confirmation! Don't get faked out, which is known to happen in this setup.
The pattern consists of a breakout, followed by a period of consolidation, in which there are at least 3 touches of a lower boundary line, 2 touches on the upper line to form the triangle. There is a parallel channel line drawn matching the angle of the lower boundary line to indicate the path of the growth pattern following confirmation of the bullish breakout, and the move is measured by the widest part of the triangle, which will be repeated from the breakout point. Confirmation requires at least 1 candle closing above the trend line, preferably more, and there should be increasing volume.
The bearish case would be if the symmetrical triangle pattern breaks the lower boundary line and closes at least one candle below the line, and the measured move would repeat to the downside.
Wait for confirmation! Don't get faked out, which is known to happen in this setup.
Comment:
Pattern played out as expected, with a retest of the apex of the triangle before continuation. Reached upper resistance at 3000, which is rapidly weakening. Expecting another 100-200 sats of upside before the pattern is complete.
Comment:
ADA broke through major resistance at 3000 sats, most likely headed toward 3100-3200 sats in the next few hours.
Comment:
Looks like the bottom of the correction is in, or nearly in, after the latest wave of this continuation pattern. Expecting the pattern to resume bullish continuation toward 3100 sats.
Comment:
The ADA price did not reach my final target, but did provide a good exit point at 3030-3040 sats when the reversal pin candle formed.
The Bitcoin price drop from $7700-7500 occurred at the bottom of the pattern for ADA, which pushed the price down outside of the acceptable trading range and should have stopped out any active trades. Historically, ADA bounces back to inside the range in relatively short order when this happens, so I anticipate a solid recovery unless bitcoin continues a downtrend below the 200 period MA on the 4h timeframe.
The Bitcoin price drop from $7700-7500 occurred at the bottom of the pattern for ADA, which pushed the price down outside of the acceptable trading range and should have stopped out any active trades. Historically, ADA bounces back to inside the range in relatively short order when this happens, so I anticipate a solid recovery unless bitcoin continues a downtrend below the 200 period MA on the 4h timeframe.