The Cardano/Ethereum (ADA/ETH) pair appeared to have broken out of an inverse head and shoulders reversal pattern on April 28, 2018 when it went above resistance of 0.0005. Unfortunately for breakout players, the market was not yet ready to launch a bull run.
Those who bought the bottom used the breakout as an opportunity to take heavy profits. In addition, a bearish divergence was spotted on the daily RSI.
This was a sign of underlying weakness. As a result, ADA/ETH broke 0.0005 support on May 3.
The price action trapped those who bought the breakout. This sparked a selling frenzy that saw the pair generate 20 red candles in 25 days.
While the ADA/ETH looks bearish right now, it appears that the bottom is in sight. Technical analysis show that ADA/ETH is well on its way down to support of 0.00027. Read more from hacked.com…
thumbnail courtesy of hacked.com