CARDANO Handle almost completed. Last chance to buy before $15?
What’s cardano (ADA) price prediction?
As you see, the C&H formations are all quite similar and as the Handle of the current pattern is almost completed, I thought it would be a good time to update my idea.
For better comparison purposes for the current analysis, I’ve included the May 2021 and the August 2020 C&H patterns on the same chart, plotting them on the Fibonacci extension Channel. As you see, when the August 2020 C&H was completed, a two month parabolic rally was initiated. Notice how the handle started just after the 1D MA50 (blue trend-line) and the 1D MA100 (green trend-line) formed a Bullish Cross and was completed after the last low was made on the 1D MA100. The 1D MA50 broke but the 1D MA100 held and supported the rebound that broke the Handle upwards. On the current C&H (May 2021), the price just hit the 1D MA100 on October 06 and is consolidating within that and the 1D MA50 as Resistance. If the pattern is replicated then we should expect the Handle to break very soon and that will give way to the new parabolic rally. Notice that the pre-handle rebounds on both patterns started after a squeeze/ convergence of the 1D MA50 (blue trend-line) and the 1D MA200 (orange trend-line).
If that’s the case, then the logical question that should come on mind is how high can this rally go? Well that can be explained using the Fibonacci Channel. The first High of the Channel was naturally on the Fib 1.0. The parabolic rally of the first C&H stopped and made a Higher High on Fib 1.5 (i.e. 0.5 Fib higher than the previous). If this arithmetic sequences continues then the next Higher High (led by the new parabolic rally) should be on Fib 2.0 (i.e. 0.5 Fib higher than the previous). Within a rough two month time-frame, that should be around $15.
This may be the last chance to buy ADAUSD before that rally to $15 and possibly beyond. What do you think? Feel free to share your work and let me know in the comments section!