Practically each single cryptocurrency I have a look at has hidden bearish divergence on their respective day by day charts. Hidden bearish divergence is a situation the place value makes decrease highs, however an oscillator such because the RSI or the Composite Index makes larger highs. Hidden bearish divergence warns of a continuation of bearish value motion – however it is just related if the prior pattern was bearish. For many cryptocurrencies, the short-term day by day pattern has been bearish.
Above: Cardano (ADAUSD) Chart
Cardano (ADA) continues to face a number of strain because it approaches the day by day Kijun-Sen. Ever since June 18th, there was intense promoting strain at any time when Cardano strikes to the Kijun-Sen. The blue arrows on the chart correspond to the identical interval because the blue arrows within the RSI beneath. Cardano has made decrease highs whereas the RSI has made larger highs – hidden bearish divergence. This divergence additionally seems because the RSI is starting to check the 50 and 55 ranges. 55 is the primary overbought stage within the RSI when an instrument is in a downtrend. The RSI itself has printed a rising wedge – a really, very bearish continuation sample. I anticipate Cardano buying and selling decrease to at the very least the 1.20 stage. If 1.20 fails to carry, then a go to to 0.84 – 0.94 is subsequent.
Above: Polygon (MATICUSD) Chart
Like Cardano, Polygon (MATIC) is displaying hidden bearish divergence. There’s a huge quantity of resistance for Polygon above on the 1.3755 stage. 1.3755 accommodates the day by day Kijun-Sen, three trendlines, and the 38.2% Fibonacci Retracement. Polygon discovering weak point in opposition to that resistance is typical, and for anybody who’s bearish, the setup may be very tempting. There doesn’t seem like a lot momentum current to proceed the push larger for Polygon, so I might count on to see a transfer down and a take a look at of the 61.8% Fibonacci Retracement and excessive quantity node at $0.85. Under $0.85 is a large quantity dessert within the quantity profile – nearly no help exists to cease Polygon from hitting the mid $0.40s if $0.80 fails to carry.
Above: Litecoin (LTCUSD) Chart
Litecoin’s (LTC) present Ichimoku chart reveals almost the identical bearish continuation setup as Cardano and Polygon. The blue arrows on the chart and the Composite Index present the place the hidden bearish divergence exists. Now, I may see Litecoin transferring above the day by day Kijun-Sen to check the 2021 VPOC (Quantity Level of Management) at 175 earlier than going through strain decrease. Litecoin’s RSI has been going through constant resistance on the 50 stage, so it needs to be no shock to see weak point transferring into Wednesday, Thursday, and Friday.
Throughout all three cryptocurrencies above, the present Ichimoku charts are bearish. I’ll proceed to stay a short-term bear so long as value is beneath the Cloud and the Chikou Span stays beneath the candlesticks. The one time I’ll convert to a full on bullish stance is when value is buying and selling above the Cloud and the Chikou Span is buying and selling above the candlesticks.