If we look at the Daily chart for ADA, we can see just how strong of an uptrend it is in, yes, ADA will dip back a bit, possibly back to its Conversion Line (Tenkan Sen) which is also roughly where its Bollinger Bands Middle Band Basis. At the moment of typing this, the Price has found support from its Upper Bollinger Band so ADA may walk the Upper Bollinger Band upwards depending on if this Daily Candle closes above it. It might be hard to see but the VPVR is indicating that Buyers have Out-bought the Sellers at the current level we are at. The ADX DI SMA is indicating we are in an STRONG UPTREND because the ADX (Yellow Line) is at 23.3, the +DI (Green Line) is at 20.7 and the -DI (Red Line) is at 7.2 indicating that the gap between the Uptrend and Downtrend is strong in favour of the uptrend. The ADX line has also crossed over the 10 Period SMA which is at 23.0. The RSI is not quite Overbought, and is actually starting to slope downwards indicating we may see some dippage. I think it’s too soon to call our channel a Rising wedge, especially as it looks like ADA has found strong support above its Bollinger Bands Upper Band so may make a higher high that could turn it into an upwards Expanding Wedge Pattern if we do not close above it. The Key Resistance line of our upwards channel can possibly be turned into a key Support if we eventually close above it. We’ll have to keep an eye on that channel as it could turn into a rising wedge. The dotted 2nd trend line has the possibility of becoming our new support. If ADA does dip, i cannot see it closing below its Bollinger Bands Midpoint Basis on the Daily. Notice how the distance between the Conversion Line (Tenkan Sen) & Base Line (Kijun Sen) is widening indicating strong upwards momentum, If ADA does have a bad drop, and lets say we wicked down past our Upwards Trend Line, then i cannot see us dropping & staying below the Base Line (Kijun Sen) level as that is also the 50EMA level. That be some strong support right there. Remember, it doesn’t really matter where we wick to on the daily, it’s where that daily candle closes that really counts. With everything that's on the horizon for ADA, Goguen, Decentralised Smart Contracts, DApps ect ect, i honestly believe that anything under $1 for ADA is an absolute steal. I hope this is helpful.
Note
What a great day. As i've mentioned yesterday on this post, it looks very likely that we will have a new Support Line upwards once we close above our previous Resistance Line on the Daily. Good luck 🙏 Note
ADA closed the daily candle above its old Resistance Line which is now our new Key Support Level. 👍
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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.