$ADAUSD - ABCDE pattern completion and next target
Updated
Hi guys! 👋🏻
🔔 Cardano is one of the top gainers this year gaining nearly 84% this year only and hitting a new all-time-high at $0.397412. As many analysts and cryptocurrency researchers suggest that the DeFi boom this year will be greater and make a greater noise, Cardano with its Shelley upgrade and DeFi transition is surely one of the altcoins to watch.
🔔ADA/USD has formed a triangle, and is still in an uptrend channel. With sellers puch the price lower and buyers pushing the price higher, the pair could go either way, although continuation of the uptrend is most likely. The uptrend continuation is backed by MACD and RSI indicators. The MACD line already corssed the signal line,and EMA50 and MA100 resistances are currently being tested as support.
🔔 The triangle pattern usually signals the ABCDE correction based on the Elliott Wave theory and is a trend continuation pattern. However, to make sure that the price action follows the rules of Elliott waves, it is highly recommended to use Fibonacci retracement tool. As seen on the chart below, previous retraces of the uptrend ended near the 0.786 Fibo, which means that the bearish trend is not yet confirmed and that buyers need a deeper correction to regain their purchasing power.
🔔 The same is spotted on the reversed trend, each uptrend of the previous correction ends at 0.786 Fibo, means that sellers too look for the best price to sell and are acting rather confident rather than cautious. For this pair, watch the $0.350500 level very closely as it’s a Fibo 0.786 level and the upper edge of the triangle. After the testing of the upper edge, it’s expected that the pair will go down once again to complete the wave E and breakout from the triangle. When the triangle breakout is confirmed watch for resistances at $0.368600 - $0.370000.
🔔 For the long-term, I'd target $0.47000
✊🏻 Good luck with your trades! ✊🏻
If you like the idea hit the 👍🏻 button, follow me for more ideas.
🔔 Cardano is one of the top gainers this year gaining nearly 84% this year only and hitting a new all-time-high at $0.397412. As many analysts and cryptocurrency researchers suggest that the DeFi boom this year will be greater and make a greater noise, Cardano with its Shelley upgrade and DeFi transition is surely one of the altcoins to watch.
🔔ADA/USD has formed a triangle, and is still in an uptrend channel. With sellers puch the price lower and buyers pushing the price higher, the pair could go either way, although continuation of the uptrend is most likely. The uptrend continuation is backed by MACD and RSI indicators. The MACD line already corssed the signal line,and EMA50 and MA100 resistances are currently being tested as support.
🔔 The triangle pattern usually signals the ABCDE correction based on the Elliott Wave theory and is a trend continuation pattern. However, to make sure that the price action follows the rules of Elliott waves, it is highly recommended to use Fibonacci retracement tool. As seen on the chart below, previous retraces of the uptrend ended near the 0.786 Fibo, which means that the bearish trend is not yet confirmed and that buyers need a deeper correction to regain their purchasing power.
🔔 The same is spotted on the reversed trend, each uptrend of the previous correction ends at 0.786 Fibo, means that sellers too look for the best price to sell and are acting rather confident rather than cautious. For this pair, watch the $0.350500 level very closely as it’s a Fibo 0.786 level and the upper edge of the triangle. After the testing of the upper edge, it’s expected that the pair will go down once again to complete the wave E and breakout from the triangle. When the triangle breakout is confirmed watch for resistances at $0.368600 - $0.370000.
🔔 For the long-term, I'd target $0.47000
✊🏻 Good luck with your trades! ✊🏻
If you like the idea hit the 👍🏻 button, follow me for more ideas.
Trade closed: target reached
TP1Trade closed: target reached
TP2
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