Following the previous idea on Cardano
, it failed to break above the resistance and went further down to the $0.18 support area
. Fibonacci applied to the corrective wave after the $0.34 support breakout shows that ADA/USD rejected 327.2% Fibonacci cleanly, suggesting the potential bottom of the downtrend. The following move up resulted in RSI
oscillator breaking above the downtrend trendline
, adding extra confirmation of the trend reversal.
Unless the $0.18 support remains untouched, it is reasonable to expect a trend reversal from Cardano. But first, the resistance at $0.34 has to be broken for this scenario to become reality.
Overall, the buying opportunity seems very attractive, and as previously mentioned only break below $0.18 support could extend the consolidation.