If we look at the daily chart for ADA, we can see that we have a specsavers pattern forming…… only kidding, but there is a reason i’m showing the 2 ellipses on the chart. What we’ve been seeing since around the 10th Feb is very similar to what we saw around the 6th Jan with the Bollinger Bands Lower Band turning inwards & contracting upwards over a period of time bringing volatility into equilibrium before a Bollinger Band Squeeze and then another Price rise upwards. At the moment, it's debatable whether or not we’ll see a Bollinger Bands Squeeze this time around. At the moment of typing this, The Lagging Span (Chikou Span) is indicating sideways momentum but with a slight slope upwards. The RSI is also indicating sideways momentum with a slight slope upwards. I’m not saying its fully upwards momentum because sideways momentum can be within a price range especially with consolidation as we are seeing with ADA on the daily. The ADX DI SMA is also indicating the trend is sideways with the ADX (Yellow Line) at 68.9 since the 14th Feb. The 10 Period SMA (White Line) is still under the ADX at 63.7. The +DI (Green Line) & -DI (Red Line) are starting to expand outwards away from each other with the +DI at 23.6 and the -DI at 8.9 indicating we are still in an uptrend for this daily timeframe and that positive momentum is increasing over the negative momentum. I stated in a previous post that the Price may walk up its Pitchfork Median Line on the daily and that seems to be the case. If we don’t break upwards over the next 2 week then ADA may break the $1 mark on the 4th March if the price continues closing above its Pitchfork Median Line. Momentum is sideways but favouring slightly upwards so we could see some upwards strength tonight & over the weekend especially if the +DI increases positive momentum which would push us up much sooner than the 4th March. Worthy of note is that we know that our Pitchfork Median Line on the daily chart is our major support level as we have closed 7 candles above it on the daily, and it looks like we’ll close another candle tonight making it 8 daily candles in a row. The Price is also a great distance away from its Ichimoku Cloud Leading San A & B (Senkou Span A & B) so there is no fear of dropping into the bearish zone anytime soon for this timeframe. As well as our Pitchfork Median Line, & Pitchfork Support Lines, we also have our Conversion Line (Tenkan Sen), Base Line (Kijun Sen) and Bollinger Band Middle Band Basis as our potential support levels. All in all, the future look bright for Cardano ADA......... and my beloved VeChain 😜. I hope this is helpful. Good Luck 🙏
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.