Cardano ADA still a Long Term Buy
Updated
I have been posting about ADA' a few times now the past 2 months, this time i am NOT going to give a short term view but only going to do the long/mid term view. Just too much noise on the lower time frames lately. TA is quite useless on the low time frames because Bitcoin' is moving too randomly. Each time when it looks to make a rally it drops and each time when it looks it will crash it moves up again.
Anyway, the bullish wedge on ADA' is still in play here. Since we had the high volume break out it has been moving sideways with decreasing volume . This tells me a lot of accumulation has been going on the past 2/3 months. If this chart of a non crypto asset, i would go long BIG time here without even a second of doubt! But it's crypto and there has been allot going on lately. But nonetheless i am going to give this one a try and make it a big swing trade. Meaning i will carefully scale in using 4 to 6 entries.
What i do upfront is, calculate what i am willing to loose if the trade fails. Then i look what my stop level(s) are and based on those two factors i determine my position size. This will be used for the first 2 or 3 entries. Because the other entries will only happen when the price is moving up so i will risk profit instead of my own money :).
ADA' chart here is actually saying that Bitcoin' won't drop below the 6000ish, because if it does it would mean the bottom formation here will get invalidated. I just don't see this happening for ADA' (the bottom formation is just so solid, but we all know alts follow Bitcoin'. So i have been in a twist the past month or two because of the mixed signals. There are a few more alts showing long term bottom formation's but the weak link is actually Bitcoin'. With it's low volume lately, everything has become uncertain. As if the uncertainty was not already enough, Tether price drop came along making things even worse.
Because this chart is so solid, despite all the uncertainty, to post this bullish view on ADA'
Please don't forget to like if you appreciate this :)
Previous analysis on ADA:
Anyway, the bullish wedge on ADA' is still in play here. Since we had the high volume break out it has been moving sideways with decreasing volume . This tells me a lot of accumulation has been going on the past 2/3 months. If this chart of a non crypto asset, i would go long BIG time here without even a second of doubt! But it's crypto and there has been allot going on lately. But nonetheless i am going to give this one a try and make it a big swing trade. Meaning i will carefully scale in using 4 to 6 entries.
What i do upfront is, calculate what i am willing to loose if the trade fails. Then i look what my stop level(s) are and based on those two factors i determine my position size. This will be used for the first 2 or 3 entries. Because the other entries will only happen when the price is moving up so i will risk profit instead of my own money :).
ADA' chart here is actually saying that Bitcoin' won't drop below the 6000ish, because if it does it would mean the bottom formation here will get invalidated. I just don't see this happening for ADA' (the bottom formation is just so solid, but we all know alts follow Bitcoin'. So i have been in a twist the past month or two because of the mixed signals. There are a few more alts showing long term bottom formation's but the weak link is actually Bitcoin'. With it's low volume lately, everything has become uncertain. As if the uncertainty was not already enough, Tether price drop came along making things even worse.
Because this chart is so solid, despite all the uncertainty, to post this bullish view on ADA'
Please don't forget to like if you appreciate this :)
Previous analysis on ADA:
Note
A break of the low, of the green support area, will be my stop loss. On the right, the blue and orange area will be my first 2 small entries.
Note
ADA is almost the same BCH, but still has not made that big rally as BCH. Assuming Bitcoin will turn bullish, i think ADA could make a similar move as BCH. A first step would be a good break of that channel on the left (can see the line on the right as well).The bulls need to keep it above that green support though.
Note
So far not allot has change, ADA bull made another attempt today to move higher. I can not make allot of this current movement, meaning i don't know what the next step is on the low time frame. Bigger picture is looking very good at the moment, against the Daily resistance trend line. Bulls need to hold that green support zone on the right. If they can do that, it should be a matter of time until we move up again.Note
ADA bulls are pushing, volume is increasing which is a very good sign. If Bitcoin stays above the 6400, i think it's a matter of time until we break that blue resistance line (same line of that channel on the left). I expect a big rally to happen when that 0.08ish breaks (assuming the volume will increase).Note
This green support has to hold, otherwise bulls loose the momentum.
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