TECHNICAL ANALYSIS: Cardano end of the correction and 100% gains ahead?
TECHNICAL ANALYSIS:
The price of Cardano cryptocurrency quoted for Bitcoin ADABTC dropped lower in the wave correction than assumed in the original wave scenario. Nevertheless, after reaching the level of 0.00004066, the price dynamically rebounded by drawing a reversal candle formation called Hammer Candlestick Pattern. Then it broke above the golden downward trend line and it reached 50% of the Fibo retracement of the previous down leg.
The main scenario:
Currently, the price is most likely in the psubwave 2 correction and tests the trendline from the bottom and is approaching the support level of 38% Fibo at 0.00005802. The price can still go deeper to other levels of elimination eg 50% or 61% and bounce up after hitting one of them.
After the correction, an impulsive breakdown is expected to reach around 0.0001000, which is almost 100% profit.
Alternative scenario:
On the other hand, an alternative scenario assumes the deepening of declines in the more complex wave correction over time and in price:
- breaking below 61% Fibo will mean a higher probability of decreases towards the first level of 0.00004066, and then even 0.00003236 (red dotted arrows).
- knocking the top to the level (or near the level) of the previous wave high, followed by a dynamic retreat, will also mean a more complex correction in the unfinished wave.
Violation of 0.00003236 invalidates a completely impulsive growth scenario.
TREND AND IMPORTANT LEVELS:
Main trend: UP
Intermediate trend: DOWN
Daily trend: NEUTRAL / UP (continuation of the upward trend and the possibility of breaking higher after adjustment)
KEY LEVELS:
- for further increases - 0.00006895 and later 0.00007227
- for continuing correction - level 0.00005802, 0.00005466 and 0.00005130
- for a continuation of falls - level 0.00005130 and later 0.00004066
PS: If You do not want to miss another update, make sure You are following me!