So what is going on with ADA?ADA is still within its longterm Upwards Pitchfork Pattern (A,B,C) and note that ADA is still above its Pitchfork Median Line.
At the moment ADA has found support from its Pitchfork Upper Yellow Support Line. It is crucial that ADA continues CLOSING daily candles ABOVE this level! Note that the last time ADA closed below this level was 2nd Aug 2021.
Note that ADA is still BELOW its Bollinger Bands Middle Band Basis 20 Period SMA for this 1d timeframe. Note that we have had expansion of the Upper and Lower Bollinger Bands and this volatility expansion is for the Negative Momentum.
Note that ADA is below its Least Squares Moving Average (LSMA) for this 1d timeframe. Note that a close below the LSMA is considered a sell signal for this indicator.
If we look at the Volume Bars on this ADA/USD Binance Chart we can clearly see that Volume is still relatively low and has been for a while compared to what ADA was getting in February 2021. Note that yesterday’s volume Bar was above its Volume 20 Period Moving Average but its closed in the Red.
If we look at the Average Directional Index (ADX DI) the Trend Strength is increasing with the ADX (Orange Line) at 23.53 above its 9 Period EMA (Black Line) which is at 20.73. The -DI (Red Line) has dropped sharply to 19.93 and the +DI (Green line) has also dropped to 8.48. This tells me that while Negative Momentum has dropped, Positive Momentum is still poor so Negative Momentum is still strong on this 1d timeframe.
The Moving Average Convergence Divergence (MACD) is indicating Negative Momentum is still strong on this 1d timeframe. The MACD Line (Blue Line) is starting to curve slightly sideways but note its is still under is Signal Line (Orange Line) as well as still under the 0.0 Base Line in the Negative Zone. Note that ADA has not been in the Positive Zone since 17th Sept 2021.
For your viewing pleasure, here is a closer look at this 1d chart.
So while ADA is still in a longterm UPTREND, it has sadly been stuck in a short to mid-term DOWNTREND since 2nd Sept 2021 which looks slightly similar to the 16th May 2021 - 20th July 2021 short-term downtrend.
So what does ADA need to do to get back on track? On this 1d chart, ADA needs to stay ABOVE and more importantly keep CLOSING daily candles ABOVE its Pitchfork Upper Yellow Support Line. ADA also needs to get back ABOVE and more importantly CLOSE ABOVE its LSMA as well as its Bollinger Bands Middle Band Basis 20 Period SMA. We also need the MACD Line (Blue Line) to cross back ABOVE the Signal Line (Orange Line) and then get back ABOVE the 0.0 Base Line of the MACD Indicator. We also need the +DI (Green Line) to cross back ABOVE the -DI (Red Line) of the ADX DI indicator. I would not get excited unless ADA can achieve most if not all this on this 1d timeframe.
I hope this is helpful with your trading and hodl-ing.
Notes:
LSMA = Black Squiggly line on Chart
Bollinger Bands = Grey Bands on Chart
Pitchfork = A,B,C Pattern on Chart
Volume Bars = Bars Bottom of Chart
Volume MA = Orange Line going through Volume Bars on Chart
