Welcome to this analysis where we are looking at Cardano's 6-hour timeframe perspective, the recent events, the current formational structure, what we can expect the next times and how to possibly handle the situation appropriately. Since Cardano already completed the left shoulder and head of the huge inverse head-and-shoulder-formation it is building here it is now forming the right shoulder above the 700-EMA which is really important to remark here because this is a necessary which needs to hold sustainable, now Cardano is also building a new formation which is confirming into the right shoulder currently developing which will finally complete when Cardano shows up with the right price-action in the structure and manages to form the proper breakout, therefore I detected all the important levels and likely outcomes we should consider here.
Looking at my chart you can watch there that Cardano is just building this broadening-wedge-formation where it already completed the waves A-C and now is setting up to form the wave D which will lead into the upper resistance-cluster marked in red in my chart, when Cardano approaches this level with the wave D it will highly likely produce a pullback from there as there are many resistance layers coming together formed by the upper boundary of the broadening-wedge and the upper horizontal-resistance marked in red, this cluster is good to be the origin for the final wave E which will then complete the whole wave-count finally within the blue back-up-cluster marked in my chart where the 700-EMA is coming together, with horizontal support and the lower boundary of the broadening-wedge good for a bounce to the upside from that level.
When Cardano completes the wave-count it is very important that it does not fall below the back-up-cluster again because this can possibly invalidate the broadening-wedge-formation, therefore a bounce is inevitable and necessary. When this happens it can confirm the whole formation with the breakout above the upper-boundary and above the neckline when Cardano manages to breakout above the neckline finally with a volatile move and close there, such price-action will complete the whole head-and-shoulder-formation as well as the broadening-wedge and activate higher targets in the structure, for now, it is significant that Cardano shows up with the broadening-wedge to finally complete and bounce in the back-up-cluster, after that it will be interesting to see the further confirmations and ongoing developments.
In this manner, thank you everybody for watching, have a good day as well as good trading, all the best!
“Trading effectively is about assessing possibilities not certainties.”
Information provided is only educational and should not be used to take action in the market.
btc is sure going to correct around 14k then Ada unfortunately will die..