🔔 Is Cardano set to compete with Microsoft and beat Ethereum? Well, according to Cardano founder Charles Hoskinson neither is impossible.
Further, looking at the ADA chart, it isn't impossible that the bulls could pull such a thing off... although there is still some resistance from 2019 to content with first.
Let's look at some levels for the bulls and bears.
Support: If the bulls can't rally here, we should see a bearish breakdown to S1. The S1 orderblock at the most recent significant swing low should see a reaction if tested.
Directly below S1 Is the S2 S/R flip, followed by the S3 orderblock formed prior to the continuation upwards. Although breaking below S1 is bearish, S2 and S3 could provide support if, for example, the broader market pulls ADA down past the S1 level.
Ideally, the bulls won't need any of these support levels, as dragging out the current correction dampens momentum and shows weakness, but any of these supports could work to at least offer a retest of the current levels we may end up breaking down from.
Resistance: The bears have some advantage currently on a shorter timeframe due to consolidating price action with constant lower highs since finding rejection at the prior dead cat bounce range.
The bearish price action found on the chart makes a quick break of the R1 orderblock formed at the recent failed swing high ideal for the bulls to break quickly.
If the bulls can breach R1, either on this move as bullish continuation or after a retest of lower support, then the R2 S/R flip is the next target.
Above R2 is the R3 ordeblock formed during the breakdown and finally the R4 previous failed swing high that can be seen on the chart on the left.
[I]Previous levels:[/I] The following chart shows the drop in the summer of 2019 where the resistance ranges coming into play on the current chart were formed.
Summary: The bulls need to break out of this consolidation range, and the sooner they do it, the more strength it shows.
The bears have every interest in capitalizing on the weakness of bears and turning this consolidation into a top, with the ideal spot to reject the bulls being R1.
Cardano may end up killing Ethereum and Microsoft with its technology (hard maybe), but to win a price war... the bulls are going to need to show some strength quick.
@TommyAuh, Timeframe is very difficult to tell but based on the space to the right of price and where we are watching I would agree with your assumption, 3 days to a week max in order to see a reaction from what we are watching.
AlphaBotSystem
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@TommyAuh, Keep in mind though the underlying factor of if Bitcoin or Ethereum make any major moves these levels may not be as heavily respected as is seen by most other situations of large-cap coins being pushed and pulled by BTC's or ETH's movement.