ADAUSD Reversal Could be Around the Corner
Updated
Important things to note:
ADA has created a rather nice basing pattern
Has 2 higher highs, 1 proper retracement
1 more proper retracement will signal reversal
Price has broken through its resistance at 2.57
BTC has made bullish price decision
Important Dates to Take Note of:
ADA Alonzo (smart contracts) go live Sep 12 2021
ADA Summit Sep 25-26 2021
So, things are looking up for ADA at the moment. We have a strong basing pattern and a good amount of consolidation at the 2.40 level which created more support. Price has made 2 higher highs and though we only have 1 proper retracement for the movement, we have a hint to where the price may retrace to. If that retracement occurs and settles at a level noted on the chart, a short term reversal will be signaled. The base that has formed will likely give it enough momentum to push forward. Overall, the market doesn't look bad but things can always change. I would like to see more volume. However, once a reversal signal occurs, you can expect bulls to return to the asset. ADA was in deep waters due to the liquidation event, and showed for now that it can pull through which is a very good sign if you are long on the asset. Things are looking good, and I would like to see further consolidation before the asset decides to move forward. I will continue to keep an eye on the asset, if you are worried about further pullbacks, set your alerts on the chart at the support level. Personally, the price is a little too high for me to enter again, so I will likely find another promising asset to throw money at (there are plenty right now). I will continue to watch ADA and update everyone as much as possible. Again, try to remain calm, be patient, and realize that movements like this happen regularly. You always have time on your side.
lso, it is worth mentioning that TradingView has reached out to me and offered me very kind words, and showed me some support. I thought that was very nice of them and it was very unexpected. Though, I never planned for any of this to happen at all. I was constantly making charts for myself and my friends and some of them suggested I post them publicly. I never imagined any of this would happen, if I did, I would have waited until I had a bit more free time LOL. However, it makes me really happy to know that people are learning from my charts and hopefully it will encourage you all to learn technical analysis for yourselves! In a couple weeks I will have more time to make the educational content you have been asking for, and I will likely chart a wide spectrum of assets. Thank you again for all of the support, it means more to me than you know!
Now for some good news. As a person who follows ADA closely, I know that the adoption of the platform will happen very quickly with the release of smart contracts on the 12th of September. In fact, I think it was built with such a great foundation, I might just do an entire post on the fundamentals of Cardano sometime in the future. Pretty soon, we will see NFTs being created, DeFi, applications being developed, and overall strong adoption of the ADA blockchain platform as a whole. If there will be any immediate reason for ADA to move higher, it will likely be news coming from the summit on the 25-26 of September. So I would keep an eye on their twitter accounts around that time.
Again, I apologize for having less time to post at the moment, but that will change in a couple weeks.
I am going to make a video soon teaching everyone my approach to charting. I will cover the entire workflow process I go through. I hope you enjoy it.
Tell me what you think?
This is not financial advice. DYODD.
ADA has created a rather nice basing pattern
Has 2 higher highs, 1 proper retracement
1 more proper retracement will signal reversal
Price has broken through its resistance at 2.57
BTC has made bullish price decision
Important Dates to Take Note of:
ADA Alonzo (smart contracts) go live Sep 12 2021
ADA Summit Sep 25-26 2021
So, things are looking up for ADA at the moment. We have a strong basing pattern and a good amount of consolidation at the 2.40 level which created more support. Price has made 2 higher highs and though we only have 1 proper retracement for the movement, we have a hint to where the price may retrace to. If that retracement occurs and settles at a level noted on the chart, a short term reversal will be signaled. The base that has formed will likely give it enough momentum to push forward. Overall, the market doesn't look bad but things can always change. I would like to see more volume. However, once a reversal signal occurs, you can expect bulls to return to the asset. ADA was in deep waters due to the liquidation event, and showed for now that it can pull through which is a very good sign if you are long on the asset. Things are looking good, and I would like to see further consolidation before the asset decides to move forward. I will continue to keep an eye on the asset, if you are worried about further pullbacks, set your alerts on the chart at the support level. Personally, the price is a little too high for me to enter again, so I will likely find another promising asset to throw money at (there are plenty right now). I will continue to watch ADA and update everyone as much as possible. Again, try to remain calm, be patient, and realize that movements like this happen regularly. You always have time on your side.
lso, it is worth mentioning that TradingView has reached out to me and offered me very kind words, and showed me some support. I thought that was very nice of them and it was very unexpected. Though, I never planned for any of this to happen at all. I was constantly making charts for myself and my friends and some of them suggested I post them publicly. I never imagined any of this would happen, if I did, I would have waited until I had a bit more free time LOL. However, it makes me really happy to know that people are learning from my charts and hopefully it will encourage you all to learn technical analysis for yourselves! In a couple weeks I will have more time to make the educational content you have been asking for, and I will likely chart a wide spectrum of assets. Thank you again for all of the support, it means more to me than you know!
Now for some good news. As a person who follows ADA closely, I know that the adoption of the platform will happen very quickly with the release of smart contracts on the 12th of September. In fact, I think it was built with such a great foundation, I might just do an entire post on the fundamentals of Cardano sometime in the future. Pretty soon, we will see NFTs being created, DeFi, applications being developed, and overall strong adoption of the ADA blockchain platform as a whole. If there will be any immediate reason for ADA to move higher, it will likely be news coming from the summit on the 25-26 of September. So I would keep an eye on their twitter accounts around that time.
Again, I apologize for having less time to post at the moment, but that will change in a couple weeks.
I am going to make a video soon teaching everyone my approach to charting. I will cover the entire workflow process I go through. I hope you enjoy it.
Tell me what you think?
This is not financial advice. DYODD.
Note
A retracement past 2.53 would also signal reversal. A valid retracement is 30% to 60%. Cheers!Note
I should also mention the inverse H&S pattern with perfect neckline (look at basing pattern).Note
Price will need to settle at the point I mentioned on my chart and create a valley by starting to move upward.Note
And just like that, you have confirmation of a short term uptrend. Trends are questioned and either confirmed or denied at every peak and every valley. It is because of this that a trend will always live in an environment of uncertainty. I hope you all enjoyed this example which worked out rather perfectly, and I hope this helps you understand trend analysis a little better. Thanks again!Note
Note!!!!!!!Please do not post my charts on other people's posts in order to say they are wrong. People have different opinions and different takes on technical analysis and that is ok. For example, I do not use a lot of technical indicators for crypto, I focus on patterning, trends, and candles. There is no right or wrong way to do this. I have studied it all and I have my own style. I just know what works for me. That being said, I do not want upset analysts coming to my page because someone posted my chart on their page saying they are wrong. I understand why that would bother them, because I would not like it either. Therefore, please refrain from doing so, everyone is entitled to their own opinion and no one is right 100% of the time. If you are not learning everyday you are not growing and that includes me as well. Please respect other analysts with the same respect you show me. Thanks again everyone!
Note
If you take a look at the chart, you will see rounded portions of the price movements. What you are seeing is a fight between the bulls and the bears trying to wrestle control of the price. Interesting right?Note
Reversal is not looking great right now, BTC's base has broken down leaving it vulnerable to bearish pressure. It is basically a big channel sticking our horizontally at the moment, very weak pattern. Set alerts and stop losses.Note
ADA looks better than BTC does, but that is besides the point, if BTC falls, so will ADA, so just be aware.
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