Long

ADA - symmetrical triangle, 12 cents in play

Updated

Symmetrical triangle may be forming; it's a 50/50 pattern, but since I expect another drop of BTC and the triangle is forming from a downtrend, I believe it should drop to the downside with a target of $0.12.

A bullish breakout would have a first target of $0.22 -0.23.

Comment

The sudden huge bull run of BTC changend the pattern, but not the targets. It looks like an ascending triangle forming. This is supposed to be a reversal pattern in a downtrend, with the mentionend bullish first target. However, in a bear market it can just as well be a continuation pattern, target then remains about $0.12.

I'll be watching ADA and BTC closely.

Comment

Forgot to mention: In the original post I have drawn the triangle too big. The white line (resistance of downtrend channel) should have been the triangle resistance. ADA broke out and reached bullish target at $0.22 when BTC made it's sudden run.

RSI and MACD on the 4 hour indicate that ADA is overbought, it should go down and test the support of the purple ascending triangle sooner or later.

Nothing of this is financial advice.

Comment

Green line is target for a breakout to the downside

Comment

Well, target of $0.12 reached, but certainly not as predicted in one move down. Support and resistance lines played out perfectly right though. You can see ADAUSD broke the 12 Cent support line with the 4th try (support/resistance gets weaker the more often it gets tested).
ADAUSD then bounced at the very last support line at $0.85.
I am watching how this bounce plays out, meaning closely watching BTC's bounce as well.

Comment

Note that this might be just a relief ralley after which there might be more downside coming. For now I am long.

Disclaimer

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.