Before everyone goes screaming to the hills asking Charles Hoskinson for their money back, remember that with shorter timeframes, one must expect pullbacks and short-term downtrends now and again, it enables the market to remain healthy, enables compound interest from the peeps who took profit at the ATH to re-invest that CI and also encourages people who missed out, to buy back in at a cheaper price. Although for some reason, most people feel comfortable buying BTC $42K the they do at $31K, absolutely crazy 🤯. First and foremost let’s look at the daily chart, ADA is still in a longterm uptrend, and will be unless it breaks through its Leading Span B (Senkou Span B) Cloud (Kumo) Support and into the Bearish Zone along with the Lagging Span (Chikou Span). Obviously this all depends on if you are a scalper, day trader, short-term, mid-term, longterm or just Hodl-ing for the next 5 years because this will all be dependant on what your timeframe of choice & whether or not you believe in the Ichimoku Cloud system. The RSI is indicating we are out of the Overbought area and we still have room to drop, although that’s no indication we will drop. The ADX DI SMA is indicating we are still in a longterm uptrend because the -DI (Red Line) has yet to cross over the +DI (Green Line) which would indicating a downtrend on the daily. The ADX (Yellow Line) is at 45 indicating a strong trend but we have fallen under the 10 period SMA (White Line) which is at 52, so we need that to reverse for renewed strength. A key point to look out for is if this daily candle closes above its Bollinger Bands Midpoint basis, if that happens then i’m getting the Kleenex out. Notice that we have a new developing POC (Point of Control) at around $0.31, so that is something to keep your good eye on especially if the buyers out weigh the sellers. If ADA does dip further, i cannot see it dipping past its Base Line (Kijun Sen) Support and certainly not past its 50EMA on the daily. Well, maybe if BTC shits the bed down to £10K 😅. Obviously its best to check earlier timeframes to get a sense of what’s happening there and what may happen on the daily. Once this daily candle closes, and also where it closes, we’ll have a much better idea of what to expect. I hope this is helpful 👍
Comment:
At the moment of typing this, ADA is still consolidating within its Triangle Pattern on the Daily Chart and has found strong support at about $0.329. Even if ADA drops to around $0.29 it could still consolidate within its triangle pattern and try for a later breakout on the upside. ADA is still in an uptrend, you can see the ADX (Yellow Line) is at 28, the +DI (Green Line) is at 14 and the -DI (Red Line) is at 11. So we haven't had a -DI + DI crossover into a downtrend. When our ADX (Yellow Line) crosses back above the SMA (White Line) which is at 42, we should see the +DI and -DI gap widen in favour of the +DI. If ADA closes this daily candle above its Bollinger Bands Middle Band that is also a sign of strong support because we've closed above its for 3 days in a row. If BTC can stay above its 50EMA on the daily chart then there shouldn't be any issues. I hope this is helpful
