ADA has formed a year-long cup and handle pattern. Traditionally, this pattern is a bullish indicator of continued upward movement. The cup and handle have played out perfectly, and we have broken out of the resistance at ~0.68. This move confirms our pattern and makes this a well calculated long entry position.I expect a 70% increase in the price of
ADA in the short term, which would put the price above $1 (~$1.15). This is potentially a great entry to a long or large spot position before a swift upward movement.The altcoin market cap, including ETH (
TOTAL2), is already front-running the altcoin market cap, excluding ETH (TOTAL3). This is another bullish indicator that the alt coin market may be ready for another leg up, helping out patterns play out. I personally added to a spot position here, but I think its a great long entry as well if you have more powder.
DYOR and bring home those gains.
Note
An ascending triangle is forming on the 4HR chart. The trend is currently trying to test support for the third time and may continue upward and breakout after, as this pattern usually indicates a continuation of upward momentum! Wait for confirmation and dive in! Current resistance is 0.80; support is 0.685.Note
ADA still sits around that resistance level, the longer we wait here the more explosive an upcoming move will be. I think it will just take a single green day market catalyst.Note
ADA must rebreak the resistance level around 0.68 to have any chance of following through with this move. For the time being, it all depends on market sentiment, and the market is very indecisive. We did bounce strongly off of the second lower resistance around 0.58, which is good. This puts us in a channel between 0.58 and 0.68. We may bounce around here before eventually breaking up or down; set alerts!Note
ADA is currently testing key support at ~0.57 and the next level if we go lower would be ~0.5. Although this may seem bearish in the short term, this could be a great back-test of old resistance levels. For growth to be healthy we need to backtrack and flip those old levels as new bottoms.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.