Bears Defend Resistance. Cardano Short In The Cards Now?
The Bears defended yet another attempt to break resistance (1.16-1.19 region) yesterday on 03.07. Is there one ore attempt in the cards for the Bulls? Cardano has completed a 5th Elliot Wave Structure. The potential target, if the bulls stay on the sidelines, and the selling continues, is a drop to the around 0.90 support area. Shown is the Fib extension of the first correctional waves of the new ATH. The 0.50 Fib support of the entire 5 wave structure is 0.90, as is the fib extension tool showing the 0.90 range at the golden ratio 0.618.
To keep note of: The 55 EMA has yet to be tested on the way up on this bullish 5 wave breakout. A drop to the 0.90 range would likely be very close to the EMA. The historical RSI support level of 44 would be in play also if a move down is competed. There is a crossover and bearish divergence evident on the MACD histogram
Conversely, a dip to the 1.04 area, if properly defended by the bulls could show a bullish pattern form. Then perhaps a long position may be viable. Wait for confirmation before entering a trade. Do your own research. Informational purposes only. Not financial advice