ADA Short Term Targets
ADABTC just showed a strong upswing in the past couple days. There’s a general strong sentiment in the community with their test net releases. I’m a strong believer in mean reversion so now that we’ve seen the strong rally, we have two questions to ask: 1) how far will it retrace, and 2) what are our future price targets. First off, short term retracement could be over. I'm seeing reverse bullish divergence on the RSI (shown in pink line) which is a sign of continuation. The primary RSI trend seems to be in the positive direction so we’d expect that trend to continue. The MACD indicator is showing that there could be a reversal coming as well.
The Elliott Wave count is shown. If this count is correct, then we could be seeing a first wave starting to develop with a .38 retracement. Using that assumption we can use the following targets:
- 4393 (.618)
- 4851 (1)
- 5637 (1.618)
The ratio to wave 1 is shown for each. These zones are fibonacci confluence zones which makes them strong targets.
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