Moment Of Truth For ADA (And Other Altcoins)
Updated
Right now, Cardano (ADA) is still struggling to hold within its large channel (pink lines). Since my last two ADA posts, we did target very close to the major overhead resistance above 1200, but failed to get above and have retested our support. This is more of a short term trading idea here. I'm still watching this thing pretty closely. If we can get back above 1100 shortly, it may produce a large impulse move up. Targets are illustrated on this chart, along with what a potential inverse head and shoulders breakout could look like. Also, just look at that volume since our most recent bottom. This could signal accumulation and demand, since the volume was really weak on the initial move down. I've talked about this on other posts, where I've explained how to spot shakeout and accumulation tactics.
Likewise, many other altcoins are currently struggling to look bullish again against Bitcoin. Some look much better than others. NEO and XLM, for instance, have done very well since their recent Bitcoin ratio bottoms. Additionally, many alts are right up against major USD resistances as well, and seem to be building volume and buying pressure against those areas. One of the things keeping alts from really exploding is that many people are likely just breaking even at these points on their altcoin positions, if they've DCA'd throughout the bear market. Many traders are probably selling at these areas to reduce risk/exposure or take profits. Once these levels are broken though...we could be in for some serious upside. Of course, the market could also experience a failure, but so far volume looks very healthy, and uptrends are intact across the board.
Previous ADA analyses linked at bottom. I'm still in a trade from 1060 for practice. I guess we'll see how it goes.
This is not financial advice! Just a potential setup I'm seeing, and I'm curious to see if it plays out.
-Victor Cobra
Likewise, many other altcoins are currently struggling to look bullish again against Bitcoin. Some look much better than others. NEO and XLM, for instance, have done very well since their recent Bitcoin ratio bottoms. Additionally, many alts are right up against major USD resistances as well, and seem to be building volume and buying pressure against those areas. One of the things keeping alts from really exploding is that many people are likely just breaking even at these points on their altcoin positions, if they've DCA'd throughout the bear market. Many traders are probably selling at these areas to reduce risk/exposure or take profits. Once these levels are broken though...we could be in for some serious upside. Of course, the market could also experience a failure, but so far volume looks very healthy, and uptrends are intact across the board.
Previous ADA analyses linked at bottom. I'm still in a trade from 1060 for practice. I guess we'll see how it goes.
This is not financial advice! Just a potential setup I'm seeing, and I'm curious to see if it plays out.
-Victor Cobra
Trade active
I'll post this again, just for future reference, but entry was 1060.Trade closed manually
Best to truly wait until that uptrend is ever reclaimed, because ADA is still struggling hard. Lots of sell pressure. This trade is meant for educational purposes. Still seeing some decent buying in the 900 area.Note
I often wonder whether or not to post my personal trades on here, since it can cause my analysis to become more biased. In any case, I’m still holding most of my position (it’s not large, anyway), because I think the r/r for alts at these levels is pretty decent, even if I end up being wrong. It’s hard to catch some of these moves, so I like to enter before they happen, and do my best to anticipate them.Note
Not able to post a chart right now, but it appears that some alts (ADA and ONT, for example) are in a potential ABC corrective phase against Bitcoin, and the C wave is taking the form of a falling wedge. Decreasing volume may confirm this. This means that they may slide a bit lower in the coming days, but might ultimately break up, I’ll make a separate post about this later.
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