$ADA #Cardano bullish case - 2 falling wedges and a dec triangle
Cardano has formed two large falling wedges starting back on May 5, 2018, and is now forming a descending triangle at the tip of the wedge. Falling wedges are statistically bullish patterns, with the upside of the breakout measured by the widest point of the wedge. Descending triangles, while they can break bearish, if they break bullish also give measured moves to the upside of the widest part of the triangle.
That gives us three targets to watch based on the measure of the widest part of all three patterns, the larger falling wedge, the smaller falling wedge contained within, and the descending triangle.
If these three patterns all break to the downside, expect significant continuation of the bearish pattern. (exit point)
If the patterns break bullish, look for profit taking at the three target points marked on the chart.
Given how long $ADA has been in a downtrend and the tightening trading range we've seen over the past couple of weeks, combined with the near oversold RSI on the 4h chart, I would expect this pattern to break bullish in the near future.
That gives us three targets to watch based on the measure of the widest part of all three patterns, the larger falling wedge, the smaller falling wedge contained within, and the descending triangle.
If these three patterns all break to the downside, expect significant continuation of the bearish pattern. (exit point)
If the patterns break bullish, look for profit taking at the three target points marked on the chart.
Given how long $ADA has been in a downtrend and the tightening trading range we've seen over the past couple of weeks, combined with the near oversold RSI on the 4h chart, I would expect this pattern to break bullish in the near future.