ADAUSD Descending Wedge Break to Upside
Updated
Important things to note:
ADA has formed a descending wedge which confirms short term bullish activity.
ADA bouncing from oversold RSI.
Breakout to upside of wedge coming soon.
50MA test will likely be the decision point.
50MA lines up with resistance due to volume.
My last chart predicted this movement, this wedge gives it more justification.
BTC will need to move to about 45500 to deny another movement down.
Important Dates to Take Note of:
ADA Summit Sep 25-26 2021 (likely to produce more important dates)
So it looks like we have a descending wedge which tells us the price will breakout above the pattern. This is something I predicted in my last chart and now we know the price is headed for the decision point (the decision point box from my last chart). However, we have a bit more info on where that decision is likely to occur. I believe it will happen when testing the 50MA. From there we have two scenarios, either the price passes the test and moves above the decision point to 2.56 where we can forget about the price moving further down, or it gets rejected and heads to 1.9. We do not know if that will happen yet. But is nice to see we have some confirmation of the short term direction. ADA could have easily just fell to 1.7 ending the correction immediately. Now, we will have to wait for the test. This coincides with BTC moving upwards towards 45k. If BTC can hold 45500, I believe you can expect further movements upwards. If the price is rejected, we know what to expect. On the chart we can also see the 50MA test lines up perfectly with resistance formed by the buying volume. Overall, I think we are nearing the end of the correction. Again, take this opportunity to DCA and if you can't, just wait it out. This pullback hasn't been too bad and I am excited about where the crypto market will go from here. Thanks again everyone! I will continue to update you all on the movements of ADA.
Also, 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 formed a descending wedge which confirms short term bullish activity.
ADA bouncing from oversold RSI.
Breakout to upside of wedge coming soon.
50MA test will likely be the decision point.
50MA lines up with resistance due to volume.
My last chart predicted this movement, this wedge gives it more justification.
BTC will need to move to about 45500 to deny another movement down.
Important Dates to Take Note of:
ADA Summit Sep 25-26 2021 (likely to produce more important dates)
So it looks like we have a descending wedge which tells us the price will breakout above the pattern. This is something I predicted in my last chart and now we know the price is headed for the decision point (the decision point box from my last chart). However, we have a bit more info on where that decision is likely to occur. I believe it will happen when testing the 50MA. From there we have two scenarios, either the price passes the test and moves above the decision point to 2.56 where we can forget about the price moving further down, or it gets rejected and heads to 1.9. We do not know if that will happen yet. But is nice to see we have some confirmation of the short term direction. ADA could have easily just fell to 1.7 ending the correction immediately. Now, we will have to wait for the test. This coincides with BTC moving upwards towards 45k. If BTC can hold 45500, I believe you can expect further movements upwards. If the price is rejected, we know what to expect. On the chart we can also see the 50MA test lines up perfectly with resistance formed by the buying volume. Overall, I think we are nearing the end of the correction. Again, take this opportunity to DCA and if you can't, just wait it out. This pullback hasn't been too bad and I am excited about where the crypto market will go from here. Thanks again everyone! I will continue to update you all on the movements of ADA.
Also, 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
So I was hoping there would be more for me to talk about, but it looks like ADA is slowly trotting its way upward. Lets see if it will hit the 50MA and make its decision there, or if it will make a decision earlier. Personally, I would like to see a test of the 50MA. You will be able to tell its decision from where it retraces after it pushes ahead. On another note, BTC is also heading up to the level I had mentioned. So far so good on both accounts, lets see what happens!Note
Price is retracing right now, watch for break below 2.13 to determine if 1.9 is next. I am heading to bed! Goodnight everyone!Note
Well, I do not think BTC is going to make it to the level it needs to, and ADA has not reached a level that would signal bullish sentiment. The pullback continues. The majority of the movement is likely to happen Friday. Price will settle around 1.9.Note
I may have to eat my words, I did not think BTC would reverse and head towards the 45500 level, but it looks like that might be happening right now. That is why I have no put out a chart yet in case you are wondering. I want to be sure of the direction before I speak about it. We may get the 50MA test we are looking for, but again that does not mean the test will be successful. So, the direction is still up in the air at the moment.Note
Also, what I am looking for in the case of BTC is the test of the 200MA. Similar to what we are waiting for in the case of ADA.Note
We are about to get our MA test!!!!!!!!!!!! Also, I put out a chart explaining why MA tests are important and why this test is important to me in particular, I also explained the state of crypto and how I see it right now.
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