Welcome to this analysis where we are looking at Cardano's 4-hour timeframe perspective, the recent events, the current formational structure, what we can expect the upcoming times and how to possibly handle the situation appropriately. Cardano has confirmed the ascending-channel-formation firstly to the downside where it also completed the wave-count and coherently formed the breakout below the lower boundary where is now found temporary support and is setting up to test the resistance clusters above, this will be crucial as there is a higher likelihood currently given for a pullback in this structure as it is marked in my chart within the resistance-cluster, therefore I detected all the important levels and possible outcomes we should consider in Cardano's currently established movements.
When Cardano properly confirms the resistance-cluster consisting of the falling trendline in black, the 400-EMA in red and also horizontal resistance lying there to the downside it is likely to continue till there is substantial support found which can reverse the dynamic, which is in this case the blue marked dynamic-back-up-zone where Cardano can bounce within the 61.8% Fibonacci-support and the coherent horizontal showing up there. When Cardano properly manages a bounce within the dynamic-back-up-cluster we can expect it to move on further finally above the descending-trend-line which will be crucial as Cardano has to move above it considering any bullishness in the further structure, when Cardano does not manage to move above it the pullbacks are likely to continue.
The next times Cardano has to show how the bullishness can be activated again as suggested and when Cardano then finally confirms above the 23.6% Fibonacci it is likely to continue further in the structure, the dynamic is differential to for example majors like Ethereum or Bitcoin which are showing up a more picture, the declines within Cardano weren't nearly that strong as they were in Ethereum or Bitcoin . The next times will show how Cardano proceeds it has to be marked that there is still potentials given also with perspectives on the higher timeframes where the inverse head and shoulder still lying and not invalidated already, the next steps in the structure can also lead to a proper confirmation of the inverse head and shoulder formation.
In this manner, thank you everybody for watching, have a good day as well as good trading, all the best!
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Information provided is only educational and should not be used to take action in the market.