Cardano (ADA) Leading Alts
Cardano outperforming for the day. Both BTC and USD charts for Cardano show bullish signals.
Cardano’s Bitcoin Chart
Cardano’s Bitcoin chart shows some mixed signals – but mostly bullish from my interpretation. While the current pattern on the daily chart shows a bear flag developing, the Volume Profile shows something different. Last week I put out a buy signal at 0.00000594, which was just before a break of the high volume node. Friday saw a drive higher with Saturday and Sunday showing a retracement. Today (July 29th, 2019), Cardano is moving higher, breaking the highs of the last three trading days. And creating new two week highs. From the look of the chart, Cardano looks poised to continue moving higher with relative ease until it hits the 0.00000770 area. If it breaks above that value area, then the Point of Control at 0.00001128 is the next major resistance zone. If we follow Cardano’s price action movement over the next couple weeks, we may very well see it move into a position to lead the broader altcoin market higher. Cardano could very easily be a new measure of the altcoin market – which is the speculative side of the cryptocurrency market. And Cardano is most assuredly a speculative trader and/or investment, especially given its full network has yet to be released and testing on staking has only recently began. Regardless, Cardano has significant staying power and should shrug off its recent weakness to rally ahead. Compared to the rest of the altcoin market, Cardano is leading its peers for the day. It will be interesting to see what it does the remainder of the week.
Cardano’s US Dollar chart
One of things I like to do on my cryptocurrency charts is to remove the wicks from the candlesticks. This eliminates a lot of the noise and the ‘spikes’ that occur. The open and close, I’ve found, are more appropriate for some crypto pairs over others. On Cardano’s US Dollar chart, there appears an ascending triangle. The ascending triangle pattern is an inherently bullish pattern. While it mostly known as a bullish continuation pattern, it can form even in a down trend. Some may consider this ascending triangle to also be a bearish pennant, which would mean this triangle is also a bearish continuation pattern. Regardless of the definition and interpretation, but entry levels to go long and short are very evident. A breakout below the swing low at C would be an excellent short entry while a breakout above the upper trendline would be an excellent buy entry. The 50% Fibonacci resistance level lies just above at 0.064. A return to the Point of Control at 0.0854 would be the most logical target to hit in for the next move higher. Ultimately, a break above that 0.0854 would create a monstrous drive higher. There is little resistance above 0.0854 on the Volume Profile.