![cardano-updates.jpg](https://cdn.steemitimages.com/DQmbYSZipUfT1tL1NbHfTPkvkFiarUwhVpZ92wEv4SKx4mj/cardano-updates.jpg)

The Cardano chart (ADA/BTC) looks like it's got potential. Let's start with the bigger picture. Zooming out, it looks like we're reaching a decision point where, like bitcoin, we may see a major move up or down. 

![Screen Shot 2018-06-01 at 6.24.21 PM.png](https://cdn.steemitimages.com/DQmcoPaNAeTUvivPFcTVfaHahkthkA9RpskLjCNKPAAp5oc/Screen%20Shot%202018-06-01%20at%206.24.21%20PM.png)

A good case can be made for a bullish breakout. Looking at the 4 hour chart, we can see what may be a cup and handle pattern. If this is accurate, the target for this would be 0.0006456 satoshi. 

![Screen Shot 2018-06-01 at 7.44.47 PM.png](https://cdn.steemitimages.com/DQmVeZpqMb4wPxKNoyi2ygf3ENk3yKVLC7RfhonpTxd1dSS/Screen%20Shot%202018-06-01%20at%207.44.47%20PM.png)

Zooming into the 4 hour chart, it seems to be beautifully following a bullish elliot trend. With the overall market in chaos, it's nice to see a clean looking chart. Cardano has completed 5 waves up, followed by an ABC correction. It now seems to have started another 5 waves up, with wave 1 looking complete. We're now looking for the bottom of wave 2. 

![Screen Shot 2018-06-01 at 6.40.33 PM.png](https://cdn.steemitimages.com/DQmNwM4c2YPYYP8e2cPaUyGvg1dfUypfVsNWJF5WhpbiHJn/Screen%20Shot%202018-06-01%20at%206.40.33%20PM.png)

Zooming into the 1 hour chart, I'd expect wave 2 to complete possibly around the 0.382 fib level. It's currently bouncing off the 0.236 fib. If it does begin wave 3 at this point, that'd be a very bullish indication. 

![Screen Shot 2018-06-01 at 6.37.03 PM.png](https://cdn.steemitimages.com/DQmNrxjCK4PhvgrtdbMEUV2jqpdQAAJZYCuiieaoeEU8Mf4/Screen%20Shot%202018-06-01%20at%206.37.03%20PM.png)

Looking at the 1 hour RSI, we can see an ascending support line has formed. 
![Screen Shot 2018-06-01 at 7.01.54 PM.png](https://cdn.steemitimages.com/DQmcKSqEMw1omUJqG7wpF9endDNoHuWcVEd88hWVf4oHgwK/Screen%20Shot%202018-06-01%20at%207.01.54%20PM.png)

The 4 hour MACD looks like it's just crossing over to the negative side. This may indicate the coming drop needed to complete wave 2. 

![Screen Shot 2018-06-01 at 7.03.37 PM.png](https://cdn.steemitimages.com/DQmdVRL6uXmdWbccVMbixgGH6m4VUBPqXzq6zELx6A661Ve/Screen%20Shot%202018-06-01%20at%207.03.37%20PM.png)

Zooming out to the 1 day MACD, we can see it's just crossed over to the bullish side. This may indicate the coming uptrend that will begin in the form of wave 3, once wave 2 completes. 

![Screen Shot 2018-06-01 at 7.06.31 PM.png](https://cdn.steemitimages.com/DQmSKt3to8GcJ2e7P4HsnGZhvtSCx1DPURqW7QQo1tuZGPL/Screen%20Shot%202018-06-01%20at%207.06.31%20PM.png)

Looking at the 4 hour RSI and 4 hour MACD, we find bullish divergence. This lends credibility to the overall bullish count.

![Screen Shot 2018-06-01 at 6.57.54 PM.png](https://cdn.steemitimages.com/DQmR2y6uHPwJYu6HE38Bt7SewqNanZiRSrLiKvc4FiDtViW/Screen%20Shot%202018-06-01%20at%206.57.54%20PM.png)

![Screen Shot 2018-06-01 at 7.05.47 PM.png](https://cdn.steemitimages.com/DQmU3JQAFSAj5uHmZyJcN5E2vzr6qwqkq7HjejsDmnobxwy/Screen%20Shot%202018-06-01%20at%207.05.47%20PM.png)

Looking at the 4 hour chart, the 8 day EMA was acting as support, but was just broken. This also may indicate a lower wave 2 is coming. The overall order of the 8 day EMA on top, 21 in the middle and 55 on the bottom is very bullish. If we see the 8 day EMA start to cross below the 21 day, I'll need to re-evaluate my count. 

![Screen Shot 2018-06-01 at 6.52.31 PM.png](https://cdn.steemitimages.com/DQmUna3ELbQmnNyFZANrrESbQP6ZpcRMsHz6crQeGmcHnrH/Screen%20Shot%202018-06-01%20at%206.52.31%20PM.png)
*If you're unfamiliar with how to use EMA's, reference my post on the topic here: https://steemit.com/cryptocurrency/@workin2005/simple-effective-strategy-to-buying-and-selling-market-trends*

Cardano, like most Altcoins, is tied to bitcoin. This means, even though this is a fairly bullish looking chart, if bitcoin drops, Cardano will most likely drop with it. Due to the uncertainty with bitcoin, I'm hesitant to take out a position. However, if it bounces hard off the 0.382 fib level, I may take a small position with a tight stop-loss. Let's see how this plays out. 

**BIAS:**
Short Term: Neutral
Longterm: Bullish

**I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Thanks for stopping by.**

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*Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research and invest responsibly. Technical analysis is simply a guide. It doesn’t predict the future. Anyone that claims they know exactly what’s going to happen is foolish, lying or both. Technical Analysis should only be used as a tool to help make better decisions. If you enter a trade, I recommend having a stop loss and sticking to it. You will loose at times. The key is to have more wins than losses. With that in mind, I wish you great success.* 

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**If you don’t have an account on Binance, I STRONGLY recommend getting one. They’re usually the first to get reputable coins, have excellent security and second to none customer service. You can sign up here free of charge: https://www.binance.com/?ref=16878853** 

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**FYI…I just started a twitter page where I’ll post analysis, along with other relevant crypto data from myself and others. If you’d like to be notified as soon as updates reach Steemit, the twitter handle is @Workin2005**