While it is true that the crypto market has been bearish since last year, it is important to note that each individual coin has been trending lower in different and unique ways.
And right now, one of the most interesting bearish trends we are witnessing is playing out on the Cardano daily timeframe! This unique price movement is forming a key pattern that could make ADA one of the hottest coins in the crypto industry soon.
In this Altcoin analysis, we will be breaking down this massive bullish reversal pattern forming on the daily timeframe as well as the key levels and what to expect in the coming days.
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The Ending Diagonal Pattern!
The Ending Diagonal Pattern is a well-known pattern by professional traders used to predict a trend reversal in an asset.
In simple terms: “The Ending Diagonal Pattern usually forms when a trend is about to end.”
And in the case of the ADA/USDT pair, this Ending Diagonal Pattern indicates that the bearish trend we have been witnessing on the crypto pair might be coming to an end very soon!
And once this bearish trend on ADA ends, we can expect to see an explosive move back to the upside. This bullish move could reverse most of the sell-off we have seen play out on Cardono and can even make new highs in the coming weeks.
Below is a real-life example of an Ending Diagonal Pattern and the resulting outcome once the pattern was completed.
Bullish Divergence: More Confirmation For A Bullish Reversal
For more confirmation for this coming bullish reversal on ADA, we are watching the MACD indicator on the Daily timeframe for a bullish divergence.
Bullish Divergence shows strength in price. The bullish divergence is caused when the price is moving lower while the MACD indicator keeps on moving higher. Once this happens, it signifies that the asset might be getting strong and ready to reverse and begin moving up.
Right now, the Cardano price is trending lower, but the MACD indicator is showing a clear sign of a bullish reversal coming.
This tells us that “while the price might be moving down, bearish volume is dying down” so sooner or later the price will reverse.
When you combine this key indicator with the Ending Diagonal Pattern, we have price confluence and multiple confirmations of a coming bullish reversal on ADA!
In our next article: Catching The Next Bull Run On Cardano! Watch These Levels we will be breaking down how we plan to take advantage of this knowledge of a bullish price reversal in ADA, the best levels to enter a trade, and our bullish targets for this coming move.
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