ADA/BTC: Assessing ADA's Insane Parabolic Move 2D (Jul. 27)

X Force Global Analysis:


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Parabolic moves are extremely common among cryptocurrencies, as there are no market brakes like the stock market. In this analysis, we analyze ADA's insane parabolic move through the parabolic curve model, and assess its probable next moves.

Analysis

- Firstly, a parabolic move is normally consisted of 4 bases, or phases of consolidation
- It starts with the asset consolidating and breaking out, only to consolidate at higher levels
- This step continues as the asset keeps breakout out to higher levels during shorter periods of time
- Eventually, this leads to the formation of a parabolic trend
- In the case of ADA's BTC pair chart, we can see that it has already gone through four phases of consolidation, marked by base numbers
- At the end-point of base 3, the asset is normally most likely to double.
- ADA has seen a 80%+ move from the end-point of base 3.
- As the parabolic trend extends, not only does ADA have a hard time reaching new highs, it also has formed a massive extended bearish divergence
- The bearish divergence shows higher highs on the price and lower highs on the Relative Strength Index (RSI)
- The Moving Average Convergence Divergence (MACD) shows a potential death cross as the bullish momentum weakens


What We Believe

We believe that ADA had a phenomenal bullish rally. However, considering the nature of parabolic trends, it's important for traders to wait for further confirmation for a bullish trend negation.

Let us know what you think in the comment section below


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