ADA is about to gain momentum against BTC
Falling Wedge Continuation Pattern
There is an easy to distinguish descending wedge pattern on the ADABTC chart that has been forming for over a month. Typical for that set is to appear when the price consolidates, and if confirmed, it’s predominantly a continuation pattern of the long term trend.
Trade opening should be upon once the resistance(blue) and previous lower high(green) are broken.
Target a.k.a. Take Profit(purple) should be the vertical distance between support(yellow) and resistance(blue) at the starting point of the wedge.
Stop-Loss( should be placed below the lowest traded price(red). Moreover, the same level has acted first as resistance and lately as support for the past six months(green-purple channel).
Win to lose ratio: approximately 3:1
However, ideally, we would have another signal to back up this theory, such as divergence on RSI. Unfortunately, that's not the case as of now.
Last but not least, the above scenario perfectly coincides with the rising wedge pattern on the Bitcoin dominance chart BTC.D and the expected effect of the upcoming release of the smart contract on the Cardano ADA blockchain, which should happen towards the end of August/start to mid-September. However, the concrete date is yet to be set.
There is an easy to distinguish descending wedge pattern on the ADABTC chart that has been forming for over a month. Typical for that set is to appear when the price consolidates, and if confirmed, it’s predominantly a continuation pattern of the long term trend.
Trade opening should be upon once the resistance(blue) and previous lower high(green) are broken.
Target a.k.a. Take Profit(purple) should be the vertical distance between support(yellow) and resistance(blue) at the starting point of the wedge.
Stop-Loss( should be placed below the lowest traded price(red). Moreover, the same level has acted first as resistance and lately as support for the past six months(green-purple channel).
Win to lose ratio: approximately 3:1
However, ideally, we would have another signal to back up this theory, such as divergence on RSI. Unfortunately, that's not the case as of now.
Last but not least, the above scenario perfectly coincides with the rising wedge pattern on the Bitcoin dominance chart BTC.D and the expected effect of the upcoming release of the smart contract on the Cardano ADA blockchain, which should happen towards the end of August/start to mid-September. However, the concrete date is yet to be set.
Trade active:
Last week's candle closed as an Inverted Hammer, which essentially indicates a potential bullish reversal and conformation of the above analysis.
Trade closed: target reached:
Target reached. However, it seems to me that the current trend will continue. Therefore, I will close my position only partially and will wait for Bitcoin dominance to fall down to approximately 42% to close the remaining part.
