Cardano has quietly maintained an uptrend that some investors may not have noticed due to the most recent price correction. While ADA’s price movement is currently below the 50-day EMA, a commonly observed technical indicator, deeper analysis reveals that Cardano is being supported by what could be considered hidden trendline support.
Cardano has quietly maintained an uptrend that some investors may not have noticed due to the most recent price correction. While ADA’s price movement is currently below the 50-day EMA, a commonly observed technical indicator, deeper analysis reveals that Cardano is being supported by what could be considered hidden trendline support.
This subtle trend line acts as an undercurrent that guides ADA’s trajectory in a positive direction. Unlike the more obvious signals provided by EMAs, this support level is not obvious with a quick glance at the charts, requiring a more discerning eye to identify it. It is this hidden trend line that appears to be of greater importance to Cardano price action than the widely recognized EMA indicators.
The ADA chart shows that while it has fallen below the 50 EMA, the price has consistently found support along this hidden trend line. This indicates that despite the bearish crossover, there is strong underlying buying interest preventing the price from falling further. Every time ADA approaches this trend line, the market responds with enough buying pressure to maintain its overall uptrend, meaning strong and sustained support from its investor base.
Support levels, derived from this trend line, are crucial to maintaining the current uptrend. A break below could indicate a change in investor sentiment and a possible trend reversal. However, as long as ADA remains above this line, the uptrend is considered intact.
On the resistance side, local spikes provide immediate targets for ADA’s potential upward move. Each of these peaks represents a point where selling pressure previously exceeded buying momentum, and will need to be overcome for ADA to continue its ascent. The next significant resistance level is seen at the most recent high before the pullback below the 50 EMA.
L2 didn’t go anywhere
Arbitrum is showing signs that could precede a significant rally. Technical analysis of the ARB chart shows that it is approaching a crucial moment: the convergence and possible crossover of the 50, 100 and 200 day exponential moving averages.
These EMA crossovers are highly regarded within trading circles and are often interpreted as strong indicators that can herald a change in momentum.
The 50-day EMA serves as a short-term sentiment indicator, the 100-day EMA provides a medium-term outlook, and the 200-day EMA provides information on the long-term trend. A crossover where the short-term EMAs move above the long-term EMAs generally indicates bullish sentiment, suggesting that prices could accelerate higher.
The possible crossover of these EMAs could be the catalyst for an explosive rally in ARB price.
Shiba Inu falls
Shiba Inu (SHIB) has broken out of a crucial ascending triangle pattern on its trading chart. This development has invalidated a setup that some traders hoped would indicate a continued uptrend for SHIB.
The ascending triangle pattern is traditionally considered a bullish signal in technical analysis, and represents a period in which higher lows are consistently reached, indicating increasing demand. However, SHIB’s price movement has deviated from this path, breaking from the triangle’s lower trend line and closing below it.
This breakout suggests a change in market sentiment and tempers expectations of an imminent bullish breakout. Many anticipated that the asset, which had been tightening increasingly within converging trend lines, would be a decisive move. The breakout of the pattern indicates that the build-up of buying pressure was insufficient to overcome the resistance at the upper boundary of the triangle.
It is crucial to note that the fall of the ascending triangle does not necessarily herald a dramatic price drop. Since the exit from the pattern was not accompanied by a significant advance in volume or price, it implies that SHIB may enter a period of sideways movement, trading sideways rather than making notable jumps or declines.
