this is a multi time frame analysis, based on daily and weekly TF on Cardano ADA which I was bullish on since 14 July
reason for entering long:
a bullish signal candle in Daily chart (shown below) + bullish divergence between July 1st and 12th in deeps (composite indicator and price action)
weekly divergence in dips also supported the idea of a rise (13 Dec 2021 vs 21 May 2022 in weekly chart)
as you can see below, one leg completed, second leg probably will be done today:
what's next?
there are no divergence potentials at the moment in Daily chart, but in the weekly chart, a rally toward 80 UScents can cause a super bearish divergence to dig new deep!
look at the tops in below image. and don't forget: we don't predict, we observe and analyze and trade the confirmation. don't trade predictions. but it's good to have different scenarios in mind, to be prepared. and also measure the probability of them.
for example, another scenario here with lower probability (imho) is we rise above $1.2 and surpass March 2022's pick.
