ADAUSD Makes Clear Downtrend Pattern
Updated
Important things to note:
ADA had created a clear short term downtrend (3 lower highs, 3 lower lows, w/ retracement)
Descending wedge pattern lets us know price will eventually push upward
Likely to create base prior to push
No reversal signal yet
Resistance at 3.39
Support at 2.2
Price has tested 2.0
Important Dates to Take Note of:
ADA Alonzo (smart contracts) go live Sep 12 2021
ADA Summit Sep 25-26 2021
ADA had finally given us clear signs that it has entered a short term downtrend. This is typical with any pullback so it should not come as a surprise. There is currently resistance at the 3.39 level and support at the 2.2 level. There is quite a nice descending wedge forming which lets us know there will be a reversal signal in the future. This will likely create a base (looks like a cup). However, the price has tested 2.0 so do not be surprised if that is where the price ends up at some point. Obviously, this does not mean it will go to 2.0, but you should keep that in mind. Of course, I am waiting to enter until I see a confirmed reversal. I am not concerned with entering at the best price. I simply like to enter at the best time. I have preached patience as much as I could, and if you couldn't stop those impulses that told you to buy, don't beat yourself up about it. It happens to everyone. What you can do is mark that in your mind as a learning lesson and refer back to that moment the next time a situation like that arises. ADA has strong fundamental and is likely to go up in the coming years. Why fret over 50 cents when ADA has a good chance of adding dollars to its value? When I learned technical analysis and how to invest, they always tell you "never average down," however, I do not agree with this 100%. If you have looked at the fundamentals and they are strong, why wouldn't you get your asset at a discount? Now, I do agree you shouldn't do this lightly and you need to know what you are doing before you decide to average down. But I am not sold on the idea that you never average down, personally. That being said, we will see what happens with ADA. This pullback will give it the strength to move higher, and the longer it stays down, the more strength it will have to push forward. I will keep and eye on ADA and update you all when I see something. Thanks again!
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.
ADA had created a clear short term downtrend (3 lower highs, 3 lower lows, w/ retracement)
Descending wedge pattern lets us know price will eventually push upward
Likely to create base prior to push
No reversal signal yet
Resistance at 3.39
Support at 2.2
Price has tested 2.0
Important Dates to Take Note of:
ADA Alonzo (smart contracts) go live Sep 12 2021
ADA Summit Sep 25-26 2021
ADA had finally given us clear signs that it has entered a short term downtrend. This is typical with any pullback so it should not come as a surprise. There is currently resistance at the 3.39 level and support at the 2.2 level. There is quite a nice descending wedge forming which lets us know there will be a reversal signal in the future. This will likely create a base (looks like a cup). However, the price has tested 2.0 so do not be surprised if that is where the price ends up at some point. Obviously, this does not mean it will go to 2.0, but you should keep that in mind. Of course, I am waiting to enter until I see a confirmed reversal. I am not concerned with entering at the best price. I simply like to enter at the best time. I have preached patience as much as I could, and if you couldn't stop those impulses that told you to buy, don't beat yourself up about it. It happens to everyone. What you can do is mark that in your mind as a learning lesson and refer back to that moment the next time a situation like that arises. ADA has strong fundamental and is likely to go up in the coming years. Why fret over 50 cents when ADA has a good chance of adding dollars to its value? When I learned technical analysis and how to invest, they always tell you "never average down," however, I do not agree with this 100%. If you have looked at the fundamentals and they are strong, why wouldn't you get your asset at a discount? Now, I do agree you shouldn't do this lightly and you need to know what you are doing before you decide to average down. But I am not sold on the idea that you never average down, personally. That being said, we will see what happens with ADA. This pullback will give it the strength to move higher, and the longer it stays down, the more strength it will have to push forward. I will keep and eye on ADA and update you all when I see something. Thanks again!
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.
Note
I should also note that if the wedge can complete and does not break, the target is 2.55Note
There is a bear pennant on the BTC 1HR which is coming to completion, you should expect it will push the price lower unless proven otherwise. Buckle up everyone.Note
BTC broke out of the bear pennant to the upside. The descending wedge is officially broken. Target has been hit (2.55). We can hope for a basing pattern or a successful test of 2.57. I had to repost to consolidate my comments so I am not updating every minute.Note
Also, I realize that I am paying attention to a million things at once and need to slow down and check everything before I make an update so I don't confuse everyone. I am limited for time at the moment, but I am trying my best to keep up for the next week and a half. Again sorry, if there was any confusion, I will try my best to be more careful moving forward.
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