On the left we see the 4 hour chart with a bounce of the 4H 20MA, the RSI has retraced back into the neutral zone and the MACD has crossed bearish. IF the current bar can close above $1.785 to print a higher high in the 4 hr, then a case could be made that the rally could continue very quickly.
On the right we see the daily chart, with a very indecisive red candlestick, and two zones of prior resistance awaiting to be confirmed as support at $1.61 and then lower at $1.50. The RSI is still over bought and the MACD looks to have reach a sort of peak, although it isn’t very convincing as a peak and could support a continuation. However, the big tell for me is that the price is still above the standard deviation line of the upper Bollinger Band and that speak to the need to reconfirm to reconnect to the 1D 20MA centre line (projected as a dashed line).
So in summary, I think there is scope here for another day or so of correction, touching at least $1.61 and possibly $1.50 before the “worm turns” and we see price chase that up-thrusting curve on the way to $3.00.
On the right we see the daily chart, with a very indecisive red candlestick, and two zones of prior resistance awaiting to be confirmed as support at $1.61 and then lower at $1.50. The RSI is still over bought and the MACD looks to have reach a sort of peak, although it isn’t very convincing as a peak and could support a continuation. However, the big tell for me is that the price is still above the standard deviation line of the upper Bollinger Band and that speak to the need to reconfirm to reconnect to the 1D 20MA centre line (projected as a dashed line).
So in summary, I think there is scope here for another day or so of correction, touching at least $1.61 and possibly $1.50 before the “worm turns” and we see price chase that up-thrusting curve on the way to $3.00.
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With 5 consecutive days above the upper Bollinger Band, this rally has only extended the extremes levels of the RSI and the MACD even further. This price action has resulted in a clear price divergence against the RSI in the 1hr, 2hr and 4hr timeframes.
Here's the 4hr chart with an Elliott Wave count applied to 4 levels of recursive depth, with the first level showing as complete. (Note: That just my subjective count and is open to interpretation)
So, the question is: Can Cardano continue to defy gravity with this move toward $3 or will it first confirm support to allow it to reach even higher highs this bull run?
Let me know what you think.