Cardano, Breakout Of Preliminary Channel, Testing Further Level!

13 jul 2020Hello Traders Investors And Community, welcome to this update-analysis where we are looking at Cardano's recent events on the weekly timeframe perspective, the current formation-situation, and what we can examine and deduce from this whole structure for further price-development and possible trade setup. As I mentioned in past analysis Cardano moved in a narrower getting range where a breakout to the up or downside was pending and crucial for further direction, this breakout now happened to the upside with a decisive volatile move to the upside on the weekly basis, therefore, the bias has a bullish edge in Cardano here but the big question is now if Cardano can continue in this means or there are popping new bearish signs into the surface which will invalidate it on the smaller or larger scale.

As you can watch in my chart Cardano has just broken this huge blue descending channel marked in blue to the upside where it provided several touches of the upper and lower boundary before the breakout occurred. Currently, Cardano is testing this important and meaningful support/resistance level at 0.135 established since July 2018 marked in orange, this level serves at the moment as resistance as you can watch Cardano has some issues going above it as this is normally the case when approaching such a significant level the price won't most likely not shoot immediately through this resistance were a first correction and confirmation of the level more possible than a direct breakout, it is possible but as it is strong resistance the correction and confirmation is more in the possible spectrum before moving up again.

The next times we can anticipate Cardano to either move directly through this important support/resistance level which is improbable at the moment or it will firstly form a correction before moving up higher as you can watch it in my chart, when forming this correction it is from high importance that Cardano holds and confirms the upper boundary of the channel and therefore also the 90-EMA you can watch marked in light-blue which Cardano needs to hold otherwise when falling below this level it can increase bearish pressure to the downside and after this testing of the lower 60- and 40-EMA these levels together with the second trend-line you can watch in my chart are impeccable to establish further bullishness, therefore when these levels hold there is definitely room to move higher for Cardano here.

What is really interesting to watch is that Cardano and other altcoins trending right now while other more majors like Ethereum or Bitcoin are still below important established highs and in sideway movements, as I mentioned in previous analysis this can indicate the next big altcoin-cycle possible in 2020-2021 which will happen when the weakness of the major market caps increases further and there is not a decisive movement, but when these also form breakouts and confirmations we can expect the whole market going up. In such an environment where there are different currencies and different setups in the individual coins, it is important to search for the highest possibilities to trade and do not get caught in the volatile stop-loss hunts happening these days in this market trapping inexperienced traders.

In this manner, thank you for watching, support for more market insight, have a great day, and all the best to you!
The market-conditions are often the real source of truth.

Information provided is only educational and should not be used to take action in the markets.