Bears Defend Resistance. Cardano Short In The Cards Now?
The Bears defended yet another attempt to break resistance (1.16-1.19 region) yesterday on 03.07. Is there one ore attempt in the cards for the Bulls? Cardano has completed a 5th Elliot Wave Structure. The potential target, if the bulls stay on the sidelines, and the selling continues, is a drop to the around 0.90 support area. Shown is the Fib extension of the first correctional waves of the new ATH. The 0.50 Fib support of the entire 5 wave structure is 0.90, as is the fib extension tool showing the 0.90 range at the golden ratio 0.618.
To keep note of: The 55 EMA has yet to be tested on the way up on this bullish 5 wave breakout. A drop to the 0.90 range would likely be very close to the EMA. The historical RSI support level of 44 would be in play also if a move down is competed. There is a crossover and bearish divergence evident on the MACD histogram
Conversely, a dip to the 1.04 area, if properly defended by the bulls could show a bullish pattern form. Then perhaps a long position may be viable. Wait for confirmation before entering a trade. Do your own research. Informational purposes only. Not financial advice
1.04 achieved.... now what? curious about what is going to happen
UnknownUnicorn8378924
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Hello trader,
First of all nice analysis. I have to mention that in Elliot Waves Theory, Wave 3 is bigger than Wave 1 and 5. In your Analysis Wave 3 is smaller than 1 and 5 both. And the retracement waves cannot break the previous wave. If that happen the count is wrong.
Keep Going with good analysis!
Peace and Love!
HHSPN
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what comes after 5th wave, ABC, if so does the drop from Wave 5 at $1.49 to $1.05 mark the finish of A?