Cardano (ADA), and altcoin that’s been around since the blazing 2017 altcoin season, is again on the move after its creator Charles Hoskinson announced the roadmap for the next iteration of the altcoin’s network, called “Shelly.”
Last week, after the announcement, we saw about 44% worth of gains in the altcoin, as well as a huge uptick in volume. And so far, this week has been similar with about 17% of gains as the altcoin closes in on important regional resistance.
On the chart above, we note that this resistance lies at the convenient $0.10 mark, and we are likely to see some selling and profit-taking here rather than a crushing break of the level.
Augmenting this hypothesis, we see that the weekly RSI has been kicked up well into the overbought level, something ADA has not seen on this timeframe in a very long time.
However, we also must note from the RSI the lack of a bearish divergence between the early-2020 high and the current high. This suggests that strength, while perhaps exhausted in the shorter term (or perhaps not), could have plenty of firepower for further jumps during 2020.
This week’s volume profile may help us figure that out, with a volume bar that seems like it has a chance to outpace last week’s. However, volume is not exactly pouring in after last week’s strong performance, merely keeping up with it.
We shall have to see how ADA engaged this $0.10 resistance level: the ideal scenario is to break the level and flip it to support; and given the RSI profile, it seems likely to do that in the coming week or weeks.
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