$ADA - After 700% rally expecting at least a 50% correction

ADA had an extraordinary run of 700+% in the last few months, which I think is over now or almost. 5 waves (blue) appear to be done and we are now in the 5th wave (red) of the last wave.

I can see RSI bearish divergence and volume declining while price make new highs, this is another confirmation between 3rd wave and 5th wave

Typical emotion in the 5th of the 5th is complacency and euphoria, so be careful, take profits or move up your stop loss

I'm expecting a minimum drop to 0.382Fib (50%) and then to 0.5 - 0.618 Fib red zone

Divergences are all over the place

Note

After the recent drop, we are getting support at channel bottom and also with RSI, assuming a move up towards he median line of the channel or channel top

Bearish confirmation only after price breaks channel

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Price got rejected from the channel and RSI also losing momentum

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2nd confirmation and now supports are flipping to resistance. Expect further drop

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30% drop since this was posted, RSI in a downtrend as well

Breaking the upwards channel was the key, notice how RSI got rejected (red arrow) from the consolidation box which acted as support before

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Expected 50% correction. Got it! Hope this helped

imkeshav

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imkeshav

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