Bitcoin (BTC), Cardano, Cryptocurrency, News, Price Analysis

Cardano (ADA): Implications of This Bullish Setup Invalidating the Bearish Structure

The ongoing short-term resurge saw Cardano pleasing its investors with a substantial move to overcome the shackles of the 24hr 20 Exponential Moving Average. ADA bagged double-digit surges within the past two weeks, snapping its 2-month trend-line resistance. Meanwhile, the asset’s latest movements presented two opportunities to traders. Cardano traded near with impressive gains at $0.6468.

Cardano 24Hr Timeframe

Cardano saw some friction at the 23.6% FIB area and resistance at $0.63, translating to a constricted compression that formed the bullish pennant on its 24hr chart. Though the altcoin exhibits bullishness in the near term, the broader view exhibited bearishness. Moreover, BTC sentiment and ripple effects remain crucial for the upcoming trajectory.

Meanwhile, bull pennants often signal trend continuation and not reversals. Nevertheless, the price trend closed beyond the 2-month trend-line resistance plus the 20 exponential moving average, alongside the optimistic pennant setup. Does that signal potential trend reversals?

Affirming would mean the 20 exponential moving average offering support for extended upside in the coming days. Keeping $0.63 away might welcome an entry-level with a profit-booking zone within $0.67 – $7. Nevertheless, the long-term downtrends show a possible break beneath $20 EMA, propelling a short-term fall towards $0.505.

Reasoning

The Relative Strength Index (RSI) maintained a neutral bias amid the ongoing market structure. Extended sluggishness by the indicator might trigger a squeeze phase. Moreover, the on-balance volume displayed a bearish divergence as Cardano maintained compressions within the pennant. Also, stable Chaikin Money Flow closing beyond the zero-line might favor buying activities in the upcoming sessions.

As highlighted above, broad market sentiments remain crucial in Cardano’s price movements. The crypto spectrum presents upside actions during this publication. For instance, the global market capitalization increased by 2.90% to $1.25 trillion. Moreover, Bitcoin gained 3.22% to $30,516.

Final thought

Though indicators flashed mixed signals, Cardano’s decisive move past $0.63 would confirm massive trend reversals. Investors should protect the 20 exponential moving average as a footing for timing entries. Lastly, ADA boasts a colossal correlation with BTC. Therefore, Cardano enthusiasts should watch Bitcoin trends for profitable undertakings.

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