Cardano ADA More Potential Correction
Cardano has been amongst the strongest recoveries we have seen since BTC has pushed to 53,000. With this strength, we have seen ADA break All-Time Highs and has since faced strong selling pressure.
In the chart, I have indicated what I personally believe to be the range levels ADA has traded in since February 2021. With ADA breaking its ATH, it will act as strong support moving forward. Until this level is broken, ADA is still bullish. The thing about ranges is there will be volatility, it is not until the range is broken that the situation has changed.
We see a potential 5 wave up followed by an ABC correction pattern. This is in line with the rising wedge bearish pattern it is trading in. We are also seeing higher highs in price and lower lows on the RSI showing a loss of momentum. All suggest further correction towards the 200MA where we see a significant separation. A break below the Bullish Trendline will likely validate the analysis; not before.
In the chart, I have indicated what I personally believe to be the range levels ADA has traded in since February 2021. With ADA breaking its ATH, it will act as strong support moving forward. Until this level is broken, ADA is still bullish. The thing about ranges is there will be volatility, it is not until the range is broken that the situation has changed.
We see a potential 5 wave up followed by an ABC correction pattern. This is in line with the rising wedge bearish pattern it is trading in. We are also seeing higher highs in price and lower lows on the RSI showing a loss of momentum. All suggest further correction towards the 200MA where we see a significant separation. A break below the Bullish Trendline will likely validate the analysis; not before.
Comment:
If there is a breakdown of Bullish Trendline (Bottom of Wedge) then the correction target would likely be around $1.80. As long as that holds as support, a move back to the upside is very possible.
