Cardano – The Only Top 10 That Has Broken Structure
What is interesting about the price action since last weekend is that Cardano has not only been outperforming it’s peers in the top 10, but it’s also the biggest gainer and the only top 10 coin to actually break its bearish structure.
That blue and red channel is a LRG, or Linear Regression Line – I wont bore you with the math. This channel will pop on almost any crpyptocurrency chart that is a crypto in the top 20-25. Most cryptos find rejection at the top of the blue line in the channel and find support in the middle line or at the base of the red. Cardano, however, is the only major cryptocurrency that has broken and held above this structure. This is an extremely bullish signal! However! The image shows Cardano resting right below a Gann angle. That angle is in fact the last upwards sloping Gann angle in this Square of 144. There are two scenarios we need to watch for:
- Rejection at the Gann angle: this would confirm, at least for a short time, the continued bearish momentum in Cardano. In fact, the current value area is supportive for a short trade due to the Gann angle acting as resistance as well as the oscillators on shorter time frames being well overbought.
- A break of the Gann angle. A break above that Gann angle would be stupidly crazy bullish. I mean, it would be a game changer. Since May 20th, Cardano has not been able to cross above and hold above an upwards sloping Gann angle. If Cardano does break above and hold, we’re in a new trends – officially. A break of that angle means we follow Gann’s Rule of Angles which states: When price breaks and hold above an angle, it will move to test the next. And the next angle above is in the value area of 0.22 – 0.24 or a 50% higher gain in value from Cardano’s current value.
I am of the opinion that the bullish option is the more likely option. The weekly and daily charts definitely show extremely bullish signals for the next few months.