Cardano ( ADA ) massive buy signal
Crazy buy signal for Cardano ( ADA )
Cardano has been hit with some tough love every since reaching a new 2019 (and 9-month) high of 0.00001944 on April 3rd, 2019. Since that time, Cardano has dropped nearly -30% (-29.98%) from 0.00001944 to the swing low of 0.00001363 on April 21st, 2019 (Easter). What is most important about this move is the period of consecutive days that Cardano closed its daily candlestick lower than the open. Cardano has come off of seven consecutive lower daily closes – that is the 2nd longest period in Cardano’s history. The longest was from July 3rd, 2018 to July 10th, 2018 – an eight-day move lower that was only -17% lower. In fact, as far as consecutive down days are concerned, this move represented one of the most bearish moves in Cardano’s history. That may be a difficult thing to understand, especially given the bullish nature of the aggregate market since the start of 2019. There are some factors here that just scream ‘BUY’ for Cardano.
If we look at the daily volume for Cardano, we see that there has been a noticeable drop ever since a 9-month high was found at the beginning of the month. ‘Volume precedes price’ as they say, and volume dropped before price. But then, at the very beginning of the seven consecutive days down, we saw volume come in. Since April 14th, the daily volume has increased. This is an especially important piece of technical analysis data because when we see price dropping swiftly, but volume begins to spike we get an early warning signal that tells us the down drive is about to end. And this volume spike has certainly given credence to that old maxim: ‘volume precedes price.’
The other factor that needs to be observed for this amazing buy signal is the current level/number of Connie Brown’s Composite Index. While there is no immediate bullish divergence present on Cardano’s ADA/BTC chart, what we do have is an extremely low Composite Index reading. It is the lowest reading in Cardano’s history. But if you look as far back as March 4th, 2019, you’ll see a discrepancy between price and the RSI as well as the Composite Index. On the chart, price has made a higher low from the March 4th, 2019 low. But both the RSI and the Composite Index are showing lower lows. This discrepancy is known as ‘hidden bullish divergence’. This type of divergence appears during a throwback and it is only relevant and usable if a trend has already been established to be an uptrend. Cardano has most definitely been in an uptrend, so the hidden bullish divergence is authentic.
Gann Angles and Moon Phases
A double-bottom has been formed on Cardano’s chart with support being found above the 1×4 angle (blue diagonal line below price). This angle is a very difficult level for prices to cross and there are often extremely fast and powerful moves off of that angle. That is the exact kind of price action we have observed here. There is also the presence of the beginning of a Full Moon that occurred on the 20th of April. I’ve done some backtesting with Cardano to determine if any specific moon phase is sensitive to its chart – there was no clear answer. However, when any moon phase begins and prices have been trading near a swing low or swing high, we often see prices change direction. The most recent swing high was at the beginning of a New Moon phase and so it makes sense for there to be some bullish counter response during the Full Moon phase. There is also the presence of some important Gann day counts. April 22nd is 49 days from the most recent swing low on March 4th. It is also 135 days from Cardano’s 2018 low on December 7th. And finally, 102 days (within the 90-day cycle) from the prior swing high on January 10th. The culmination of these Gann cycles against this powerful swing low creates a predictable and powerful buy setup. One I have already taken advantage of.