- March 15, 2022
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
ADAUSD (Cardano) has been trading inside a Channel Down ever since its September 02 2021 All Time High (ATH). That is a significant amount of time it has been on a bearish trend and the pure structure of this Channel Down, doesn’t seem to allow much room for hope, at least not yet.
Right now the price appears to have formed a bottom ever since the February 24 Lower Low of the Channel. The same sideways trend was last seen from December 04 to December 20 2021, when ADA again made a Lower Low and after this consolidation, it rebounded back to the 1D MA50 (blue trend-line) and its 0.5 Fibonacci retracement level, before eventually resuming the downtrend.
The similarities between the inner Channel’s (dashed patterns) are obvious and this is also illustrated on the 1D RSI fractals which are identical. This time however, the 1D MA50 and the 0.5 Fib are not close to each other (0.974 and 1.115 respectively), so first target the 1D MA50 and if the price action gives a 1D candle close above it, then continue towards the 0.5 Fib (which seems it will make a perfect Lower High on the long-term Channel Down). On the other hand, a closing below the 0.750 Low, may extend the downtrend towards the -0.5 Fib extension and the 1M MA50 (red trend-line).