Cardano registered a bearish divergence on the charts, but the market sentiment had not shifted to the bearish side, at press time, with a pullback still unlikely for ADA. On the contrary, Waves broke out of its triangle pattern and targeted the $11-mark.
Source: ADA/USDT on TradingView
The momentum indicator (RSI) made lower highs even as the price made higher highs – a bearish divergence. Divergences do not signal an immediate shift in momentum but are early signs of reversal.
At the time of writing, neither a bearish engulfing nor a Doji candle was forming on the charts. ADA faced some resistance in the $0.95-$1 region, but it might still be able to test it once more.
A good opportunity to buy ADA in the event of a pullback would be the $0.72-level, however, the divergence could take a few days to play out.
Source: WAVES/USDT on TradingView
WAVES formed a descending triangle pattern (orange) on the 1-hour chart and broke out to the upside. This pattern generally sees a bullish breakout. The Awesome Oscillator crossed over zero to show that momentum was shifting in favor of the bulls.
The target for this breakout would be $11-$11.15.
As far as the long-term outlook is concerned, WAVES has been on a strong uptrend over the past week. It formed a strong level of support at $5.9 and defended that level multiple times from bearish pressure. Since then, it has flipped the $6.5-level of resistance to support and surged to $11.
Source: NANO/USDT on TradingView
While the trading volume on the 1-hour chart was low, NANO still made strong gains over the last few days. Late January saw rejection at the resistance of $4.37, with the crypto bouncing towards $3.24. It spent the last few days treading water at $3.5, and picked up momentum recently.
Both the Supertrend and the Parabolic SAR gave a buy signal for NANO. There was some resistance in the $4.8-region, but the MACD showed bullish momentum was still on the side of the bulls. This was likely to see NANO test the resistance and possibly break above as well.
Sign Up For Our Newsletter