ADAUSD Gets the Pullback it NeededImportant things to note:
Price tested 2.0 level
Price is sitting at rather weak support
On 30M chart you can see a bear flag forming. (watch where price breaks the pattern).
I do not believe price has settled.
Price has tested 2.0
BTC has pennant on its chart.
There is a massive amount of buying volume happening
Important Dates to Take Note of:
BTC becomes legal tender in El Salvador Sep 7 2021 (prompted massive sell off)
ADA Alonzo (smart contracts) go live Sep 12 2021
ADA Summit Sep 25-26 2021
ADA has finally got the pullback it needed for quite sometime now. Though, this shouldn't surprise any of my followers as I have been talking about this at nauseum for at least a week now. The price will likely settle in an area with a lot of support. The areas that I am currently looking at are 2.2 and 2.0 (due to the test of that level). However, it can always decide to break the pattern and move upward. There are fib retracement levels at 2.36 and 2.06. I think we will end up somewhere in the middle and once I have confirmation the price has settled and I see upward momentum start to form, I will enter. Again, I am a bit very patient and trade very traditionally. Hopefully we can see a nice bottom form into a basing pattern which is exactly what we want to see. If you are worried about the pullback or wondering where to enter, just remember you want to enter at a support level, ideally a strong support level and you take profits at a resistance level. That is trading 101 if you are long on an asset. I would not worry too much. Pullbacks are required for upward momentum. ADA has wonderful fundamentals and I personally do not believe crypto is at the end of its bull run. But like I said before, many analysts including myself believe that BTC will end September around 43k only to push forward to new highs by the end of 2021. Anything can happen, but that is the analysis that makes the most sense to me. I will continue to keep and eye on ADA and update you when I see anything to note. Set alerts at the top and bottom of the pattern, and at the support levels I have mentioned and you will be fine.
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.
