Cardano ADA Breakout Imminent, Technical Analysis Update & Price Now! | Crypto News Today
In this technical analysis were going to dive into the weekly daily and hourly charts review. What is going on with the price action? Well, take a look at evade io to understand the underlying data that sits behind ada and give you a bit of an overview of where we think cardano is going next. If you find this video useful and informative hit the like button, i really do appreciate that, if you are new to the channel, then do subscribe tap the bell select all notifications, and in doing so you will stay up to date with everything that we do here At cheeky, crypto right with that said, done out of the way lets dive into this technical analysis on cardano, so were going to start things off guys with the weekly chart and just to kind of highlight the structure is still intact. We have five impulse waves to the upside, kick starting things really back in march of 2020, where we saw wave one peaking out in july, wave two bottomed out towards the end of the 2020 uh really kind of bombed in in september. When i saw wave 3 really going strongly peaking out up here in may thats uh from the lows of march 2020 to may 2021, this was about 14 000 percent in gains. We then saw a way for correction, took a lot of people by surprise um, but ultimately this was a pretty healthy correction. We actually saw a triple tap on the bottom here on the low areas.
This actually started to see a good push back to the upside. In late july, from here, we set some new all time highs and recently weve had a bit of a pullback. But again this is our fifth wave coming in nice and strong now and nothing will move up in straight lines. We can see the healthy correction that we saw in the last few days about 13 days or so weve dropped down about 22. I think at peak we actually were about negative 35. Overall, though, this is a healthy correction, you see these things happen even on our third wave to the upside. Here and again, we should be expecting at least one more kind of correction to occur on our push up towards our kind of price target of 7.22 to 10. Now there are two different price targets. We have one that has uh, basically just based on technicals. We have the high from three and the low of four with the fibonacci retracement tool indicating 7.22. This obeying doesnt really take into consideration smart contracts, the launch of new projects or even the migration of projects from the ethereum ecosystem to the cardinal ecosystem, so that, as a result, i do think we are likely to stretch above the 7.22 area up to maybe even Ten dollars, but again that would be speculation, so were gon na, say its somewhere between the two and im pretty comfortable with that, and we can see that were overbought on the stochastic rsi just pulling down a little bit on the fast line.
Here and again, this is not too much of a problem when we review our five impulse waves to the upside here on the weekly, we can see that we were low areas of march 2020. We were oversold pushing up into wave, one was overbought and were up here for quite a few months. Uh we can see wave two was a nice and oversold area again down here for a little period of time before going up into wave 3 over ball and again youre entering this uh, basically in november of 2020, and we did not leave this area until march Of 2021, so were up here for several months. We then come down to wave four where were down into the oversold area and now were back at the top end here, as we go for this wave five. So ultimately, this is not bothering me because i know we can be up here for quite some time. As previously stated, we were up here for quite a few months before we started to actually slip back down into the downside. There is a little bit of volatility here like there was at the beginning of wave three and even at the beginning of wave one. So, ultimately, this is pretty much common with what weve seen previously and doesnt bother me in the slightest on these larger time frames. That being said, on the smaller time frames, being a report would be indicating that we should be looking for a pullback soon.
Ultimately, though, this is uh just entering this area, so im pretty confident were going to be up here for a while, yet um. Overall, this structure on the weekly chart is perfectly fine and is intact, wave 4 and was very, very shallow, and i think that was courtesy of the fact that everything that was going on with uh with the ecosystem and uh some of the developments we can see Wave two was uh relatively flat. Wave four was sharp and again uh wave four did not come anywhere near wave one. So, ultimately, everything is intact for the five impulse waves to the upside um, so lets jump down into our daily. Now we obviously have a good understanding of whats going on with the weekly that everything is structurally intact um here we can obviously see what is going on when it comes to our structure here for our daily, because it looks thing in a little bit more detail. We can see the recent pullback. We can see the resistance sign that was up here at 2.97 before we actually wicked up and get a new all time high at 3.10, then we saw bitcoin pull us back down into our fibonacci areas down here the 618702786. This yellow box area, we actually went down to just below the 702 before pushing right on up. So this was again an interesting opportunity to maybe even buy up the dip. We can see that it was a good push to the upside here and we are setting higher lows and so again.
Thats pretty bullish, as hell can also see theres a downward trend as well. Well get into that on the smaller time frames. We can see that we oversold on our daily stochastic rsi, like we were overbought previously on the stochastic we can see, were overbought on this nice push to the upside. We had this correction actually kind of coming in in the middle here once we were rejected from the 786 and then pretty much from here, we started to see us lose momentum, even though were pushing the price up, so were getting nice and low ready for that. Next, move to the upside theres, a little bit of volatility on the smaller time frames, but the weekly and the daily are showing us some pretty good indications that we are going to be starting to see another wave to the upside shortly. And we have to have a little bit of patience as we start to see things kind of roll out on the ecosystem, new projects launch projects migrating over from the ethereum ecosystem and with that will come transactional volume. This is something that chris talks about a lot and and with transactions guys were going to start to see a nice steady rise to the upside. This is something that you can see happen with the polygon network with matic once those transaction volumes kick in. The price discovery on the back of them are significant, so its what were looking for next as uh.
Now we have the smart contracts. We are just waiting for projects to launch waiting for migrations to occur and waiting for the transactional volume to actually start to hit the main net, where we see a significant amount of use cases for ada coming to fruition. Here we can obviously see that we are looking at pushing up on this daily to the 297, find the resistance push through and get to our first price target. The first price target is 3.37: okay, thats the 1.618 based on the highest wave 3 and the low of wave 4., okay, so again, thats technically the first area that were looking at after that we come in at the 2.618, coming in at 4.84, 3.618 comes in At 3.31, and then we top out at 7.22, but i do think that were likely to over extend a little bit as we head towards this 10 range and well review the situation. Once we get close to the 7.22 area to see if we can push through it – and ultimately everything on the daily here is looking pretty good – we are nicely corrected, were waiting now just to make sure that everything lines up on the smaller time frames ready for The next move to the upside overall theres, no problems to report on the daily chart, so its at this point that i will um actually jump over to the evade.io dashboard and take a look at the underlined data.
Sometimes theres things that we just do not know about without taking a look at what the artificial intelligence and machine learning is also indicating to us. So for that we will use our um our artificial intelligence machine learning of evidence io. There is a link in the description below guys if you have not heard of these guys or joined up already, do recommend it. This ai is going to give you a bit more insight on your cryptocurrencies. Here we have cardinal ada and a3 rated cryptocurrency overall on the platform, and basically we go from a1 down to uh d rating, so being up here. The third best rating that it can be its definitely being uh, indicated that its okay and it hasnt got any major issues in the underlying data. We can, of course, break this down a little bit further. We can see the fear in greed index that is specifically to cardano is actually a b3 rating indicating that actually we were extremely greedy up to the launch of smart contracts, and then we started to see a bit of a pull back to the downside. And here what we can see is actually that were moderate right were not fearful, were not greedy, and actually this isnt a bad place to be. This basically is indicating that we are not in the extremely greedy scenario where profits can be taken, but also not fearful, where we can just gon na sell our ada at a loss, for example, that being said for buying opportunities, you want to see it in the Fearful status, specifically in a ball run and, of course, uh when you are seeing profits so when youre, seeing it being greedy thats where profits are taken uh.
Ultimately, the moving averages are up at 8a2 rating, so no problems with the averages on the cardano and so thats good to see the sharp ratio again. An a2 rating and so sharp ratio indicates risk reward ratio. We are above the 50 day average, but we have come close to our line here. Very very um, close indeed after weve had a bit of a pullback. That being said, though, i think we are going to continue to ride this um to the upside shortly and we should hopefully start to see a nice uh gap appear between our 50 day average and um, and our green line there overall a2 no problems to report There either the profitability theyre being the best that it can be with an a1 cryptocurrency, like i said from march to may, we saw 14 000 in gains not the best, but not the worst, either, and so pretty lucrative and return on investment with a lot more To come, i do believe we can see the ami had. Ratio here is also a2, so liquidity is not a problem for cardano here we can see theres no problems being indicated from the ai or ml on the ami hat ratio, so liquidity is no problem and the profitability is no problem. The sharpe ratio is no problem in the moving averages and no problem and were pretty neutral from a fear and greed index perspective overall, an a3 cryptocurrency rating, no major issues that we should be worried about or reporting on for cardano.
So, overall, everything is looking pretty good for the weekly uh. The daily is looking pretty good from a structurally point of view and, of course, the underlying data from evada io is indicating no problems either so now lets get into the smaller time frames. This is where we start to see some of the the more um. You know immediate price action. Okay, so we can also see a good push to the upside from our downward trend. Right, we broke the downward trend. We had an upward trend, it got broken. We pushed up, we tapped this area here and we fell back down in line with what bitcoin was doing again with bitcoin pulling us back down below our trend um up here, so we had a good upward trend that was broken i.e. We were setting higher lows higher those higher lows and then we continued to fall back down, but still we set these higher low areas against these previous lows and that being said, we actually back tested on our downward trend. Turning that into a support trend, rather than a resistance trend, that being said, the main issue here is basically finding a good support line, and that is what we have done. If i zoom in, we can just make this a little bit clearer. We can actually found down that were wicking onto our 2.32 support line. Okay, and this is an area that weve been were not wicking around for quite some time, but havent been able to close below.
So this is an interesting area that we want to monitor. We take a look at the short term price action here and we take a look at our stochastic. We are looking to kind of pull back a little bit, but i do think we are likely to not go down too far. Maybe a 2.35 scenario is low. Enough to get this momentum taken out of our stochastic and allow us to have a good swing to the upside. As i mentioned, the daily is looking very good with a good amount of motion to the upside due in the very near future. That being said, we just need to see this kind of also marry up. On our shorter time frames. Bitcoin has started to push back to the upside, so if that is a good tail for, but it could lie ahead here for cardinal as well. Hopefully, well get that bounce and move up to our other resistance lines where we can start to push through the 2.44 2.47. Now im, not gon na lie theres a lot of work to happen here on the smaller time frame. So we can see a lot of resistance points on this journey back to the upside and but guys i do think we are going to get there. We just need to be a little bit patient as we start to see a new projects rolled out on the ecosystem and new migrations from the ethereum ecosystem to cardano.
If were ever in doubt, we must zoom out and pay attention to the bigger picture we dont want to lose our patience by getting frustrated with the alleys, for example, when we do know that the good structures are still intact for the weekly and the daily. We just need to kind of have a little bit of patience as we get through the next stage of cardanos life and we move into the next phase of this ballroom, guys im going to leave that there.