July 19, 2024

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Analysis: All hope is lost for Cardano (ADA) – BLOX

Analysis: All hope is lost for Cardano (ADA) – BLOX

I keep writing about Cardano, even though the price doesn’t matter much. He waits and waits, while the price continues to fall. Bitcoin dropped from 69,000 to 60,000, and as always, altcoins dropped even further. When will the time finally come for altcoins to flourish, regardless of what Bitcoin does? Most people who were hoping for this have now given up hope. Fear is returning to the market, and as annoying as it may seem for the bears, these are actually buying moments. No, Cardano will neither reach 10 cents nor 20 cents.

What do you base this on?

I think it would be a good idea to start with a short-term chart. Slowly but surely we see the soil formation developing on the chart below. Keep in mind that this is an hourly chart, so it is still very early days. However, I do see a double bottom and cautious higher lows. Well, that is simply the intention of the bullish move.

This move will only hold if we actually make a higher low, as seen in the black price action. For those who don’t immediately recognize this price data, this is the price of Bitcoin in September 2023. I saw some similarities and put them on the chart to illustrate what I want to see in Cardano in the coming days. This is the ideal scenario I have in mind. The invalidation point is below $0.38. This would mean a lower low and invalidation of the upside move.

We have now only discussed the short-term chart, but there are also some positive signs on the longer-term charts. Below I discuss the daily chart.

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A wedge falling like icing on the cake.

Although the positive signs are still early, they are definitely there. We also see something special on the daily chart: a falling wedge, or in other words a falling wedge.

So what do you think about that? It’s a bullish pattern, let me start with that, and it’s made up of lower lows and lower highs that push the price to a certain point. Kind of a falling triangle. The price often goes in an uptrend.

We are always looking for confirmation of a potential bullish scenario, and I find that with the RSI. This is an indicator that shows the strength of the trend. While Cardano price has made a clear new low, the RSI has made a higher low (see black line). This is called bullish divergence, which often predicts an uptrend.

Conclusion

Let’s sum it all up: In the short term, we see tentative steps in the right direction and an upward movement seems to be taking shape. On the daily chart we see a bullish pattern, the falling wedge, which is confirmed by the divergence with the RSI.

It may take some time, but you have to realize that Cardano, although slow, is witnessing a change in trend. Hope is not lost yet. Are you ready for green candles?