As per my previous idea the ADA turned bullish from the potential reversal zone of bullish Butterfly and recovered more than 14000% and became the most strong bullish coin among top cryptocurrencies. Now the price action has found firm support above 0.786 Fibonacci projection of A to D leg of this bullish butterfly and re-testing this level as predicted.
Previous bullish Butterfly idea before execution:
Previous bullish Butterfly idea after execution:
On the daily chart, the price action is at the support of up-channel. The volume profile is showing less interest of the traders below the resistance and high interest of traders even below the support which is a bit critical but the priceline of ADA has also a strong support of 200 simple moving average below the support as well.
On the long-term weekly chart, the price action of Cardano is trying to breakout the $0.105 resistance level. If this resistance will be broken out then it has the next resistance at $0.14. But in case of rejection by this resistance of $0.105 the priceline of ADA has next support at $0.085 then $0.065 and $0.027 respectively. In the meanwhile, the priceline is likely to form an up channel and recently it has bounced from the support.
Conclusion:
As the priceline of ADA coin is at the resistance of $0.105 and having previous support at $0.085. Therefore if it will be rejected then there are strong chances that it will be moved up from there because the price action also has the strong support of 200 simple moving average on the daily chart almost at the same support level of $0.085. However, we can expect that the priceline won’t break down the support of the expected channel on the weekly chart.