BINANCE:ADAUSD   Cardano / US Dollar (calculated by TradingView)
Disclaimer: Do not take this as financial advice because I'm not a financial advisor.

From the chart above you can clearly see that the price movement of the ADAUSD trading pair is clearly forming a cup and handle trading pattern. This is evident from the fact that the price has twice failed to break out of the resistance at its current ATH forming a bowl-like shape in the process to form a cup. And I believe the price movement is currently in the process of forming another small bowl-like shape to form a handle.

{The Upside}

I believe the formation of the handle will lead to the price testing its current ATH again for the third time and this time around we will be able to find support above the resistance line shown in the chart and this will trigger a price movement of about 45.2% from its current ATM to set a new ATM around $2.16.

I also believe that when we see a bullish MACD cross-over on the 4 hours chart it will trigger a price movement in an upward direction from the current price to test its current ATH and find support above the aforementioned resistance line.

{The Downside}

I personally believe that we have already bottomed out at around $1.16 in the current price correction and in the case of any sort of price pullback, support A on the chart should act as very strong support.

From the MACD indicator shown on the chart, you can see that the bearish indicator at A, C, and currently D have all found support on the MACD support line shown on the chart. The bearish indicator has only failed to find support on the MACD indicator support line shown on the chart once at B. Thus the only scenario where the MACD bearish indicator at D will fail to hold on the MACD support line is if the Support A on the price movement chart fails then support B on the chart should act as our next strong support.

I believe that even if Support A fails to hold and the price test supports B it will likely be a flash crash. Thus the price will most likely be back up to support A as quickly as it fell.



Disclaimer

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