According to ADA price analysis, ADAUSDT charts hint at a hidden bullish divergence, or is it a bear trap? Cardano (ADA) and Solana (SOL) have taken charge of altcoins in recent entries into the crypto market. Charles Hoskinson, co-founder and CEO of IOHK, the company responsible for building Cardano (ADA), announced on October 26 that he had signed a memorandum of understanding with the government of the Republic of Burundi. Details cryptocoin.com‘in.
What’s new in Cardano (ADA)?
Charles Hoskinson’s tour of African countries continues, meeting with the continent’s top politicians to talk to them about blockchain innovations. Cardano welcomes the first NFT and digital collectibles Marketplace as Cadalabs. This is the first Cardano-based marketplace to have a native token for private label digital goods, arts and merchandise! The Cadalabs NFTs and crypto collectibles Marketplace is another great achievement for the Cadalabs development team. IOHK has announced a partnership with Ethiopia’s minister of education to develop a blockchain-powered system to check the performance of students in local schools. Bondly Finance has announced the availability of a cross-chain bridge to connect the Cardano and Ethereum blockchains. Moreover, the firm estimates that the bridge will be ready by early 2022.
ADABTC weekly chart
The ADA and BTC chart overhead shows an increase in demand for BTC over the ADA token and it is now trading above the previous support level as the RSI is printing values below the 25 level. Like a Ping-Pong, we expect the price chart to bounce off the support level and head towards the bearish resistance. A break of the current support line will see the demand for BTC increase towards the next support level as shown in the chart below.
After consistently forming higher highs and lows on the monthly timeframe, the weekly chart above shows a new RSI reading below the 25 level this week. According to Analyst Sharma: “The ADAUSDT price chart, as seen on the chart, indicates that a hidden bullish divergence setup is coming, and with the RSI in the oversold zone, such a formation looks like Sept 21 ’20.” We expect a parabolic price increase after completing the bullish divergence chart pattern by the end of this week.
The daily time frame above shows that ADAUSDT entered a descending triangle chart formation after a long uptrend on July 27 ’21. It is known that the recent price drop below the descending triangle support formed a bearish squeeze, after which prices spiked above the descending trendline. Although RSI readings below the 25 level indicate that we are in a downtrend, a break above the downtrend line should mark the end of the downtrend.
The 4HR timeframe shows the RSI overbought readings as confirmation of the downtrend on the daily timeframe. In addition to the overbought levels, the price breakdown of the inside bar supports on October 21 at 08:00 and on October 26 at 04:00 reinforces the decision to short the ADA token from the intraday level. Short-term sellers should be cautious at this point as the bulls may be lurking in the shadows planning a squeeze.
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