Important Things To Note:
Price has had a significant price increase due to the BTC squeeze.
We are in a bull trend now if it isn't obvious by now or you haven't been following me.
Before price moves ahead it will retrace with a few options.
Minor price target of 2.37.
Major price target of 2.51.
Resistance 1 at 2.30.
Resistance 2 at 2.45.
Retracement for handle range 2.20-2.16.
Retracement for normal pullback 2.09.
Retracement for slightly higher low bounce 2.98.
Retracement for overcorrection 1.91.
Price will retrace before moving towards price target.
If handle is formed major target is in play. (Calculated by depth of cup added to top of cup)
So now that we have had a bull rally due to the BTC squeeze, we are due for some retracement. If you don't know what I mean, you probably heard me mention that contracts expire earlier today, and if BTC pushes, it will force the shorts to cover their positions. This is what made the price increase so fast. Before ADA can reach the minor target or the major target it will need to retrace. We have a few options for retracement. First, we can retrace to form a handle between the range of 2.20 and 2.16 for the bottom of the handle, in which case our major target of 2.51 will be in play. The next option will be a normal retracement down to 2.09 in which case our minor target will be in play after retracement occurs. Next, we have a slightly higher low retracement followed by a bounce at the 2.98 level. Lastly, we have the overcorrection retracement which will occur at 1.91 and accompanied by an even greater bounce. These are the options I see ahead. Ideally, I would like to see the handle form, but if any of the other options come into play, that is fine as well. Remember we are in a bullish trend until proven otherwise so don't panic during the retracement. This is completely normal. This will likely occur the majority of the weekend, however I see another bullish weekend ahead. I will continue to watch ADA and update you all accordingly. Thanks again for all the support!
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.