CARDANO testing a 2 month Resistance level.

ADAUSD posted a short-term (for now) rally since the January 10 low that brought the price on the 1D MA100 (green trend-line). That level was last touched on November 10 2021 and has since been turned into a Resistance. A break and 1D candle closing above this trend-line should be considered as a bullish break-out signal that might be the begining of a Parabolic Rally.

There are several other factors that point towards this probability. First of all as this 1D chart shows, Cardano has been trading within a Channel Down (blue) ever since the September top. That Channel was formed straight after a Cup pattern (green). The last time we saw those two patterns one after the other was from February 2020 to November 2020. Both were defined by a sequence of 1D MA50/MA100 Crosses. In November 2020, once the price broke above the 1D MA100, it required a 1D MA50/MA100 Bullish Cross to initiate the Rally. Keep an eye for a potential Bullish Cross if you want to enter ADA on time. Also notice how at the end of each Channel Down, the 1D RSI was rising.



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