ADAUSD, Made The Crucial Contemplation, Continuation Ahead!

Hello Traders Investors And Community,

Welcome to this update-analysis we are looking at the 12-hour timeframe perspective in the cryptocurrency Cardano, which has shown some very interesting signs the last times. As mentioned in the previously updated analysis Cardano has formed the second major bear-flag formation in which it had strong resistance layers within the upper boundary of the huge descending-channel and the EMA-resistance lying at the 60-EMA, these resistance levels still exist and we should not keep them by side, especially as when noticing that Cardano is somewhat weaker than the major bitcoin for example which can play a big role into the picture of Cardano, as the divergences between the individual coins increasing by time and the market are constantly changing this can help in developing a possible arbitrage, overall, what we should not do is to just take the whole market in one asset class like cryptocurrency in only one direction as this can prove fatal with the divergences increasing there need to be a differentiated approach which is distinguishing between the coins.

When considering Cardanos chart picture now it clearly broke below the lower boundary of its bear-flag formation that now has confirmed and lied ground for more downside as such formations when confirmed can prove a highly possible bearishly deducted set up. Besides that Cardano has still strong layers of resistance between the 0.94 and 0.98 level where the falling upper boundary comes together with the 60-EMA in red building this coherent resistance cluster and possible short-entry-zone marked in my chart in red, also this will mark the end of the major wave D in the structure when Cardano confirms here bearish as it is a more likely scenario we can expect it to set up the final wave E in the wave count looking for downside and to the back-up-zone marked in my chart in blue, in this level Cardano has the possibility to back-up and stabilize to form further movement and a possible breakout of the descending-channel, in this case however it is highly important that the bounce occurs solidly and that Cardano does not fall below this level anew.

In this manner, thank you for watching, support for more market insight, good day to you, and all the best!
“There is a time to go long, a time to go short and a time to go fishing.”

Information provided is only educational and should not be used to take action in the markets.