Cardano | Lower High Or Straight Up Bullish?

21 feb

Let's dig out the truth and ask the chart... My question is the same as yours, "Will Cardano proceed to hit a higher high and continue higher in the coming weeks and months?"

It is a fair question and to be honest, it is impossible to say for sure. All we can do is read the chart and the market and make an educated guess based on available data.

Here is the daily chart:

➖ We have a peak 14-December 2023.
➖ Trading volume was rising daily until this peak hit.
➖ After 14-Dec. we have decreasing volume. We interpret this decreasing volume as a bearish signal.
➖ After the decreasing volume, 20-Feb. we have a lower high. Well, maybe tomorrow it will move higher and hit new highs; this is a possibility but we have a lower high followed by a bearish candle that broke below EMA10; again, with decreasing volume. We interpret this as bearish.

➖ After the 14-Dec. peak there was another attempt at resistance, 28-Dec.; another lower high.

The RSI peaked 19-Feb. and is trending lower:

This is all happening after ADAUSDT hit its May 2022 resistance.

We can say: "If this happens, that happens and if such happens this happens... And we have a set of useless speculation."

Hold on, I'll do it.

If Cardano manages to break daily above its 14-Dec. peak and stay there, we can expect higher right away. This would negate the bearish bias and growth is possible... You see?

But instead I prefer to read the chart.

What I wrote above as "we" is a translation of the chart.
Even if I want to consider the bullish potential all the signals are pointing lower.
Even if Cardano moves up the potential is bearish.

We have a bullish trend based on the early June 2023 low with bearish potential.

The bearish potential remains open (valid) as long as Cardano trades below its mid-December peak. And as long as it stays below this level, we look for a second drop; a lower low before considering a new high and thus the "C" wave of a classic EW ABC correction.

Namaste.