ADAUSD Triangle Breaks Trendline Tested
Important things to note:
Descending Triangle broke at 2.90 signaling test
200MA was tested
Main Trendline was tested
price retreats to support
Ascending wedge breaks to downside
Important Dates to Take Note of:
BTC becomes legal tender in El Salvador Sep 7 2021
ADA Alonzo (smart contracts) go live Sep 12 2021
ADA Summit Sep 25-26 2021
So, as I said before if the descending triangle breaks, there will be a test of the 200MA and the main trendline, which is what has occurred. The price bounced off of the main trendline and retreated to its support. However, there will likely be more tests coming. If the price can be held at the main trendline, things won't be so bad for now. Set your alert for the main trendline. The reason for this is that a break from the main trendline will signal a significant pullback, most supports will be tested until it finds a support it likes. I believe this will probably be around 2.2, but it will not happen overnight. BTC was looking as though it was going to pullback. Most analysts agree it will likely end September at 43k, then make an extreme bull run to new heights, and I agree as well. The only way out of a BTC pullback was a short squeeze, which seemed possible when I looked at how much money short sellers lost on Thursday. However, to complete this, BTC needed to close at 51k, which it did not do. That being said, ADA could pullback. However, it might not be as bad as you think. 2.2 is a reasonable estimate without including the smart contract release, good news coming out of the support, or BTC becoming legal tender on the 7th of September. These events will likely cause a positive price movement for ADA so it might not be as bad as 2.2. I like considering a reasonable estimates without adding in any unknowns, for example good news. If the unknowns due happen to influence the price, I will modify my estimate. That being said, I will keep and eye on the movements. Set your alerts for the main trendline. And if possible, try to relax, ADA has quite a bright future ahead of it, in my humble opinion.
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.
Descending Triangle broke at 2.90 signaling test
200MA was tested
Main Trendline was tested
price retreats to support
Ascending wedge breaks to downside
Important Dates to Take Note of:
BTC becomes legal tender in El Salvador Sep 7 2021
ADA Alonzo (smart contracts) go live Sep 12 2021
ADA Summit Sep 25-26 2021
So, as I said before if the descending triangle breaks, there will be a test of the 200MA and the main trendline, which is what has occurred. The price bounced off of the main trendline and retreated to its support. However, there will likely be more tests coming. If the price can be held at the main trendline, things won't be so bad for now. Set your alert for the main trendline. The reason for this is that a break from the main trendline will signal a significant pullback, most supports will be tested until it finds a support it likes. I believe this will probably be around 2.2, but it will not happen overnight. BTC was looking as though it was going to pullback. Most analysts agree it will likely end September at 43k, then make an extreme bull run to new heights, and I agree as well. The only way out of a BTC pullback was a short squeeze, which seemed possible when I looked at how much money short sellers lost on Thursday. However, to complete this, BTC needed to close at 51k, which it did not do. That being said, ADA could pullback. However, it might not be as bad as you think. 2.2 is a reasonable estimate without including the smart contract release, good news coming out of the support, or BTC becoming legal tender on the 7th of September. These events will likely cause a positive price movement for ADA so it might not be as bad as 2.2. I like considering a reasonable estimates without adding in any unknowns, for example good news. If the unknowns due happen to influence the price, I will modify my estimate. That being said, I will keep and eye on the movements. Set your alerts for the main trendline. And if possible, try to relax, ADA has quite a bright future ahead of it, in my humble opinion.
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.
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