Hi friends! Congratulations to my Twitter voters, who came in first place with their vote for a Cardano analysis! Without further ado, let's check out the daily ADA chart!
Looking at the daily chart, we can see that Cardano is in a downtrend channel (in blue.) You can see that, much like BTC and others, the 10 EMA (in pink) has been acting as resistance, since mid November. Currently, ADA is being pinched between the 10 EMA and the bottom of the downtrend channel. Since the 10 EMA has been so resistive, a close above it will signal a brief rally. However, rally attempts are likely to run into resistance at the midline of the channel (dashed trendline.) You can see that the 50 EMA (in orange) is converging with the midline of the channel. So, that will strengthen the middle of the channel, as resistance, if ADA is able to rally up there.
On the MACD, we can see that there are a series of bullish divergences (green trendlines,) much like what is on many of the other crypto charts. These divergences have yet to produce a rally, but the fact that they are reoccurring shows that sell-side momentum is becoming increasingly exhausted. With that said, MACD divergences are somewhat obscure technical indicators that don't generally hold much weight with me, unless they are supported by other reversal signals. So, until we start to see some life (like a breakout on increased volume above the 10 EMA, or support held above the 50 EMA) I wouldn't get too excited about the divergences just yet. The are likely to produce a rally at some point, but the primary focus right now, should be a breakout above the 10 EMA.
Happy Holidays Everyone!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
Looking at the daily chart, we can see that Cardano is in a downtrend channel (in blue.) You can see that, much like BTC and others, the 10 EMA (in pink) has been acting as resistance, since mid November. Currently, ADA is being pinched between the 10 EMA and the bottom of the downtrend channel. Since the 10 EMA has been so resistive, a close above it will signal a brief rally. However, rally attempts are likely to run into resistance at the midline of the channel (dashed trendline.) You can see that the 50 EMA (in orange) is converging with the midline of the channel. So, that will strengthen the middle of the channel, as resistance, if ADA is able to rally up there.
On the MACD, we can see that there are a series of bullish divergences (green trendlines,) much like what is on many of the other crypto charts. These divergences have yet to produce a rally, but the fact that they are reoccurring shows that sell-side momentum is becoming increasingly exhausted. With that said, MACD divergences are somewhat obscure technical indicators that don't generally hold much weight with me, unless they are supported by other reversal signals. So, until we start to see some life (like a breakout on increased volume above the 10 EMA, or support held above the 50 EMA) I wouldn't get too excited about the divergences just yet. The are likely to produce a rally at some point, but the primary focus right now, should be a breakout above the 10 EMA.
Happy Holidays Everyone!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
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