ADA/USD - RISK of correction to 0.93 in next week, buy zone
Hello friends!
This is a quick post to for awareness of a developing RISK of a ADA/USD correction in the next week, which could again test 1.00 and possibly below to 0.93.
As I write this, many multi-day candles will be closing in a few hours. With the new candles, this risk will become clearer, but this will remain a risk to follow closely. However, I wanted to raise awareness of this risk in the meantime.
In the 7D chart (with 2 days left), indicators have been falling since ADA hit its latest ATH of 1.56 on April 14. When BTC crashed below
49K, ADA dropped to 0.92. Despite a rebound to the 1.35 region, indicators have continued to decline.
When RSI is below 80 and green EMA is at/below level 50 when the candle closes, it is probable (85%+) that prices will drop to the region around the yellow basis line in the next candle. Among technical indicator patterns, I have found this to be one of the most reliable.
Specifically, there is the following pattern:
- LSMA high but descending
- RSI is descending and below level 80
- White EMA is far below level 50 and descending
- Green EMA is below RSI and is currently just below level 50
Current indicator levels meet the criteria for a correction to the basis. It will be validated if these levels hold at the time the current 7D candles closes in 48 hours. If invalidated, prices may still decline but bounce before reaching low levels.
Unless ADA/USD rallies in the next 48 hours, this pattern is looking likely to play out (candles become less likely to change as they approach the close).
In the next candle, the yellow basis looks to be around 0.93. The most recent dip of ADA to 0.92 was 15% above the yellow basis line while indicators were higher than they currently are. Because the green EMA is barely below level 50, if this pattern plays out prices may not reach the exact level of the yellow basis line, but are likely to come withing 10%, which would be the 1.03 Fibonnaci retracement level. Of course, prices could drop all the way to the yellow basis line, so we can expect the range to be between 0.93 and 1.03 for a potential correction.
ADA at or below 1.11 would present a attractive entry point/buy zone.
Tomorrow I will look at all the new charts to see if there is support for this pattern across multiple timeframes.
For now, be aware of this risk and plan your trades accordingly.
Good luck and good fortune!
This is a quick post to for awareness of a developing RISK of a ADA/USD correction in the next week, which could again test 1.00 and possibly below to 0.93.
As I write this, many multi-day candles will be closing in a few hours. With the new candles, this risk will become clearer, but this will remain a risk to follow closely. However, I wanted to raise awareness of this risk in the meantime.
In the 7D chart (with 2 days left), indicators have been falling since ADA hit its latest ATH of 1.56 on April 14. When BTC crashed below
49K, ADA dropped to 0.92. Despite a rebound to the 1.35 region, indicators have continued to decline.When RSI is below 80 and green EMA is at/below level 50 when the candle closes, it is probable (85%+) that prices will drop to the region around the yellow basis line in the next candle. Among technical indicator patterns, I have found this to be one of the most reliable.
Specifically, there is the following pattern:
- LSMA high but descending
- RSI is descending and below level 80
- White EMA is far below level 50 and descending
- Green EMA is below RSI and is currently just below level 50
Current indicator levels meet the criteria for a correction to the basis. It will be validated if these levels hold at the time the current 7D candles closes in 48 hours. If invalidated, prices may still decline but bounce before reaching low levels.
Unless ADA/USD rallies in the next 48 hours, this pattern is looking likely to play out (candles become less likely to change as they approach the close).
In the next candle, the yellow basis looks to be around 0.93. The most recent dip of ADA to 0.92 was 15% above the yellow basis line while indicators were higher than they currently are. Because the green EMA is barely below level 50, if this pattern plays out prices may not reach the exact level of the yellow basis line, but are likely to come withing 10%, which would be the 1.03 Fibonnaci retracement level. Of course, prices could drop all the way to the yellow basis line, so we can expect the range to be between 0.93 and 1.03 for a potential correction.
ADA at or below 1.11 would present a attractive entry point/buy zone.
Tomorrow I will look at all the new charts to see if there is support for this pattern across multiple timeframes.
For now, be aware of this risk and plan your trades accordingly.
Good luck and good fortune!
Disclaimer
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.
Disclaimer
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.