Cardano looks prime for a reversal from its downtrend as price created an inverse head and shoulders and is attempting to break above the neckline. If it pushes through, price could climb by the same height as the chart formation, which spans 0.0280 to 0.0510.
The 100 SMA is safely above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the uptrend is more likely to resume than to reverse. Also, the gap between the moving averages is widening to reflect strengthening bullish momentum.
RSI is pointing up to show that there’s some bullish pressure left, but the oscillator is hovering close to overbought levels to suggest potential exhaustion soon. Turning lower could bring sellers back in and lead to dips to nearby support zones.
Stochastic is already on the way down to confirm that sellers are taking over, possibly leading to a pullback to the 100 SMA dynamic inflection point or the shoulder closer to the 200 SMA. Then again, this oscillator is closing in on the oversold region and turning higher could encourage more bulls to return.
Strong positive sentiment for Cardano has been buoying it higher since late last year and was declared the most developed cryptocurrency of 2018 based on Git commits. Weiss cryptocurrency rankings also had positive things to say about the project, citing:
“A select group of cryptos will compete to build a new kind of internet.”
Under this group, Weiss cited Cardano, EOS and Holochain as the leaders of building Internet 3.0. This refers to a new paradigm of artificially intelligent web interaction that combines IoT and blockchain in terms of how websites are created and how consumers interact with them.