ADAUSD - Time to lock in SOME profit
Updated
I've had a pretty good run with ADA recently and think its time to lock in some profit (emphasis on SOME - with crypto its always good to leave some money in the game - I am only taking around 35% of my position off here)
We have the following confluences that suggest now is a good time to lock in some profit;
Momentum Divergence
RSI Divergence
Declining volume (below 20MA)
(all on daily time frame)
To give this some further context, ADA has run +200% in under 2 months - while I believe ADA is still firmly in a bull run, its always good to have money to buy on the dips / be able to sleep at night knowing you have locked some profits in.
Could it keep going up? ABSOLUTLEY! - However, being completely transparent, when ADA hit its prior ATH of $2.43 in mid May, I had quite a big position with quite a healthy profit and didnt sell a single penny of it! - Just over 1 month later price had dropped 60% (I sold into this weakness) - so this time round I'm trying to be more sensible and take some money off the table and sell into strength.
The pullback I believe will be minor in relative terms, and I will look to buy on .236 , .382 , .618 retracements - if this pullback never comes, thats fine - I still have skin in the game :)
We have the following confluences that suggest now is a good time to lock in some profit;
Momentum Divergence
RSI Divergence
Declining volume (below 20MA)
(all on daily time frame)
To give this some further context, ADA has run +200% in under 2 months - while I believe ADA is still firmly in a bull run, its always good to have money to buy on the dips / be able to sleep at night knowing you have locked some profits in.
Could it keep going up? ABSOLUTLEY! - However, being completely transparent, when ADA hit its prior ATH of $2.43 in mid May, I had quite a big position with quite a healthy profit and didnt sell a single penny of it! - Just over 1 month later price had dropped 60% (I sold into this weakness) - so this time round I'm trying to be more sensible and take some money off the table and sell into strength.
The pullback I believe will be minor in relative terms, and I will look to buy on .236 , .382 , .618 retracements - if this pullback never comes, thats fine - I still have skin in the game :)
Note
As per the analysis - we have now seen a drop of around 14% from the time the idea was posted. .236 has been breached - I havent added yet - awaiting some sort of consolidation between 2.39 - 2.60 - if it continues to fall we will assess price action at the 2.30 level
Note
Still haven't added - .382 may hold greater significance as this retracement would also mark a retest of the prior all time high (on a daily close basis) - could be a good area for a bounce, however, lets await some kind of price action confirmation.
Note
Added at 2.34 however small size only - not convinced the sell off is done yet.Note
Added at 2.42 as the .382 area seems to be holding.Still not sizing too large.
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