ADAETH Possible scenarios - Bullish and Bearish
Right, so as we enter the new highs on ADA, I want to clarify that there are still concerns on the ADAETH pair. We want to see a break out of this descending wedge, which is usually common.
Some things I want to point out-
Bearish perspective:
- If we see a break downwards, following the two curved black paths, bouncing between the wedge squeeze, then we may have a break downwards, and this might set us down to the pervious consolidation zones of this pair as marked by the RED path.
Bullish perspective:
- There is a large cup and handle at play (Dotted black curved line), which is actually forming the handle of the pair since 2018 and before. This is an incredibly bullish perspective, and a break from this would be new ATH for both pairs, and an indication that ADA will outperform ETH. However, let's keep this a little modest.
- Green horizontal line is indicating the break zone of an INVERSE head & shoulder at play. I have circled the areas in green, as left, head, and right. This has not played out yet, but it is a possible play. If it does form this, we will wait for the break to the green horizontal line.
- The most obvious and humble play here is the descending wedge, this is not very wishful thinking, as this kind of pattern is 60% of the time seen breaking upwards. What you want to do is confirm if the other patterns mentioned above are also in play! If they are, then we have a very strong bull run ahead.
If ADA reaches the top of the BLUE bullish path, that means we will see ADA at $3 given the current price of ETH around $3400-$3500.
Some things I want to point out-
Bearish perspective:
- If we see a break downwards, following the two curved black paths, bouncing between the wedge squeeze, then we may have a break downwards, and this might set us down to the pervious consolidation zones of this pair as marked by the RED path.
Bullish perspective:
- There is a large cup and handle at play (Dotted black curved line), which is actually forming the handle of the pair since 2018 and before. This is an incredibly bullish perspective, and a break from this would be new ATH for both pairs, and an indication that ADA will outperform ETH. However, let's keep this a little modest.
- Green horizontal line is indicating the break zone of an INVERSE head & shoulder at play. I have circled the areas in green, as left, head, and right. This has not played out yet, but it is a possible play. If it does form this, we will wait for the break to the green horizontal line.
- The most obvious and humble play here is the descending wedge, this is not very wishful thinking, as this kind of pattern is 60% of the time seen breaking upwards. What you want to do is confirm if the other patterns mentioned above are also in play! If they are, then we have a very strong bull run ahead.
If ADA reaches the top of the BLUE bullish path, that means we will see ADA at $3 given the current price of ETH around $3400-$3500.
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