When we want to see the health of price movement, it is important to look at all of the time ranges available to us. Overall, ADA looks like a typical upward trending price. We have a pullback in the range of nearly 50% and bullish momentum following the push. This is a textbook upward trend. However, we can see the bullish engulfing that occurred previously was the catalyst for the price rise. This new upward candle that was created lacks the bullish engulfing I would like to see to guarantee a large price move. The reason this is important is bulls like to see higher highs, and if this push lacks bullish momentum and doesn't move to create a new high, it could easily be rejected. If it is rejected, it will be stuck in a grey area where we are trying to figure out if the trend is going to change or not. Obviously right now we are doing fine, but it is worth mentioning.
I am going to make a video soon teaching everyone my approach to charting. I will cover the entire workflow process I go through. I hope you enjoy it.
Now lets talk about why ADA has so much strength. Cardano is about to release smart contract September 12 with the Alonzo release. This addition makes it a viable competitor to ETH as an open source platform. Right now, it is just a glorified ledger. As a person who plans to be a Cadano Developer once Alonzo is released, it makes me wonder how far ADA can go. I have heard people say it cannot go to 100 dollars because it will need around a 3T market cap. But considering in the past 2 weeks ADA has added 31B to its market cap, it's definitely not out of the realm of possibility. Also, considering Grayscale Investments has picked it up, I think it has a LOT more room to grow.
@Awudu1844, Thank you so much! If you have any question, feel free to ask!
WampumSeeker
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I agree - Gotta retest that 2.99 resistance
mysticalwalrus
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@abhinayag96, Yes, from what I see in the 1hr chart, it looks like it will test very soon (within 24 hours). It is creating quite a nice bull flag at the moment in preparation for the push upwards.