To many ADA is considered a hedge to ETH, mainly for its reputation of potentially being an "Ethereum killer". We are reaching a point of contingency for ADAETH and can determine its performance for the next part of this bull cycle.
Throughout the weekly chart we have clear accumulation and local/major peak zones. April 2018, April 2019 and July 2020 all saw local peaks relative to ETH on the weekly chart, going back to the accumulation zone. January 2018 and March 2021 saw major peaks for ADA, outperforming the local peaks and creating an area to catch onto pumps in between.
After the major peak in March 2021 we've been seeing a slow bleed versus Ethereum. This is due to ADA's signature consolidation pattern, where it stays between a certain price point relative to USD for a period of time before pumping again. In addition, ETHBTC saw a bounce and is experiencing a surge in its channel. ADAETH bounced off its local peaks resistance as support for a few weeks but has broken down to the local peak zone.
Moving to the daily, we can see that a descending triangle is potentially forming, as 0.00047 has been tested two separate times, one before the major pump and one at the time of this writing. One could also interpret the downward trend as a bullish falling wedge if you decide to chart your support line at the lows in mid-March and late April. If you decide to trade the falling wedge, the price target for ADAETH if it breaks to the upside would be 0.0009. If you decide to trade the descending triangle, the price target would be 0.001.
Throughout the weekly chart we have clear accumulation and local/major peak zones. April 2018, April 2019 and July 2020 all saw local peaks relative to ETH on the weekly chart, going back to the accumulation zone. January 2018 and March 2021 saw major peaks for ADA, outperforming the local peaks and creating an area to catch onto pumps in between.
After the major peak in March 2021 we've been seeing a slow bleed versus Ethereum. This is due to ADA's signature consolidation pattern, where it stays between a certain price point relative to USD for a period of time before pumping again. In addition, ETHBTC saw a bounce and is experiencing a surge in its channel. ADAETH bounced off its local peaks resistance as support for a few weeks but has broken down to the local peak zone.
Moving to the daily, we can see that a descending triangle is potentially forming, as 0.00047 has been tested two separate times, one before the major pump and one at the time of this writing. One could also interpret the downward trend as a bullish falling wedge if you decide to chart your support line at the lows in mid-March and late April. If you decide to trade the falling wedge, the price target for ADAETH if it breaks to the upside would be 0.0009. If you decide to trade the descending triangle, the price target would be 0.001.