Short

Cardano (ADA) 70% macro correction to 15 cents?

Updated

On the “Alt-coin market preparing for a 10x move” idea from July 2023 (below) it was written:

“A word of warning. The uptrend will not be equal across all alt-tokens, I'm quite certain of that. Throwing a wide net out across the market will not work as in 2017, you've got to be selective.”

Legacy token holders are slowly coming to the realisation this was not hyperbole. LTC, MATIC, ALGO, you name it, legacy tokens are underperforming. ADA is now added to the list of tokens set to show significant underperformance for the remainder of this bull market.

On the above weekly chart ADA price action has confirmed significant negative divergence across 8 oscillators as measured over a 2 month period. Just as it was in March 2021. Look left!!

In addition to the divergence price action has confirmed legacy support as resistance. It does not get much more bearish than this. But it does… The ADA / Bitcoin ratio..

The ADA.btc pair has confirmed resistance following a confirmed break of market structure. This is not indicative of other tokens currently over performing in the space.

Is it possible price action see higher highs? For sure.
Is it probable? No.

Ww

Alt-coin market preparing for a 10x move

ADA.btc monthly

Trade active

Note

** Confirmed broken market structure **

Almost unlike any other crypto token in the market, ADA holders have given up the maintenance of market structure and allowed a lower low to print.

Daily chart

Note

The range from 40 to 45 cents must be held over the next 2 to 3 weeks in order to void this idea.
IF price action begins with a 3 in that period, the idea is very active.

Note

Very likely a upward move is about to print.

Note

As the market roars into life, ADA drops 23%
Bulls are unfazed however, the fundamentals are strong Ww !!
Strong like a new born kitten attempting to climb mount Everest.

If you're a bull, you need price action to close weekly candles above 55 cents and soon. Will revise the idea if that happens.

If you're a bear, order another round of popcorn.

Trade active

Price action confirms 5-day/50-day SMA resistance.

5 day

Note

40 cents has got to see a strong bounce if any part of this idea is to be void.
Not a limp to 42, 43.. like roadkill on its dying breath.
But a powerful move straight back up to 50 cents and above.
Anything less is weakness and I suspect you already know that.

Note

** target update **

Now 3 cents instead of 15

2-week bear flag confirms

Trade active

Note

Pay attention to the days ahead for price action dropping to the underside of the Gaussian channel as shown before on this 5 day chart (black circles). If you see a 5 day candle body close to the underside, it will be 1 to 2 years before a trend reversal is seen.

Note

The 2 week candle prints on Monday. It cannot print as is and be bullish as now so many ideas on the TV platform indicate.

2 week

Trade active

While Bitcoin is printing life crosses, Cardano is printing death crosses.

A 3-day death cross to be specific. As death crosses go, this one is deadly on confirmation.

The 3 day chart below is the same that was first drawn weeks ago. It has clearly confirmed. However our attention should not be drawn to the flag or the death cross but the red arrows.

Notice how the 3 day / 50 SMA has confirmed resistance at the time of the death cross?
This combination, regardless of stock or crypto, is a strong warning to any bull left in the room. Look left. Price action dropped more than 70% previously. You think this time is different?

3 day

without_worries

BTC
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Weblink: patreon.com/withoutworries

Allow 3-6 months on ideas. Not investment advice. DYOR

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