The diamond formation explained in terms of ADA's price A bearish confluence has arisen among all the current bullish signals. This formation is theoretically seen as a reversal pattern and is bearish based on the fact that the price originated from bullish movement. Although the price target of this formation is at $1.29, does not mean it will reach these levels tonight, however knowing crypto assets a 10% retracement is not an irregular occurrence.
In order for the price to hit the TP, it will firstly have to break below the $1.40 mark which is a strong resistance level of the previous formation the price broke out of. Then the price would have to move below the 50% fib retracement level which is an extremely strong level of support and resistance. Only then would the path be clear for a movement down to the TP which happens to be a strong support level.
I am seeing this current market as a strong accumulation phase and if the price falls to the TP it would just be a sign of the continuation of this phase, which is great news for those who are in the market for the long term. The further accumulation would benefit the ADA market as a reversal and breakout to the bulls will roll out with the release of smart contracts which will bring in further hype into the space resulting in a huge move to the bulls.
My current opinion on the market in the short to medium term remains neutral with a bias towards the bulls on a slightly longer time frame, how ever there will be some blood in the street leading up to this point of course.
A question for those of you who are scared based on the current situation with regulation over the crypto space. Don't you think that regulation is one of the best things that could come out of the crypto space?
some would think I'm crazy for saying this, BUT hear me out. Regulation is only scaring in this sector because it has never been regulated before based on the fact that it was not as wide spread adopted than it is today, and regulation is just a sign from institutions and governments that the sector is more serious than one would think and this is a way of showing the mainstream that even they are starting to take crypto seriously, But in order to do so they will obviously want to be compensated for the rise of this revolutionary financial system of assets, which is fine, unless this news has the effect on you that temps you to sell your assets. This is not a good idea as you will dearly regret this decision, maybe not now but in the near future.
Just remember that all sectors associated to any financial system or third party intermediary are taxed and regulated any way, so why is regulation in this sector so frowned upon... don't let the media cloud your logic to believe what is said is true.
How do you feel about regulation in the crypto space? leave a comment and like and we can discuss this topic, related to any asset.
