ADA had a strong basing pattern which led to a rise to new heights. However, as I said before ADA has produced lower highs, which is a signal for bulls to take profits or exit altogether. There have not been a lower low at the moment so there is no confirmation of a trend reversal as of yet. Look for the price dipping below 2.47. It will be quite obvious when you see it. But before you see that lower low happen you will have a signal. The signal will be a break to the downside from the blue trendline. You can see this started with a long legged doji appearing and a clear, red confirmation candle following, letting people know the price was going to reverse. Now since the doji does not tell you where the price will stop, you will need to look at other signals. The first thing you will look at the a break from the overall trendline, then you will look for a lower low, from there you will mark supports and keep and eye on the price movement. The sentiment has shifted, noted on the chart, and the MACD has crossed signaling a major pullback. Generally, bulls typically enter an asset at a strong support and exit at a lower high, keep that in mind. If there is no lower low, the trend is still considered an uptrend. I will continue to watch this further.
Now for some good news. As a person who follows ADA closely, I know that the adoption of the platform will happen very quickly with the release of smart contracts on the 12th of September. In fact, I think it was built with such a great foundation, I might just do an entire post on the fundamentals of Cardano sometime in the future. Pretty soon, we will see NFTs being created, DeFi, applications being developed, and overall strong adoption of the ADA blockchain platform as a whole. If there will be any immediate reason for ADA to move higher, it will likely be news coming from the summit on the 25-26 of September. So I would keep an eye on their twitter accounts around that time.
Again, I apologize for having less time to post at the moment, but that will change in a couple weeks.
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.
Tell me what you think?
This is not financial advice. DYODD.
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You might notice the last candle looks like a hammer. However, that is today's candle and it hasn't closed yet. So do not mistake the candle as a hammer.
Man, I am really green with this stuff. Your posts have taught me so much in the short time I’ve been following you. I really appreciate you taking time out of your day to spill some knowledge. Thanks man!
mysticalwalrus
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@NastyTheWhite, Thank you so much! If you have any questions on anything, feel free to let me know!
Awudu1844
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Bless u my Man. Your hard work is highly appreciated. Thanks alot.
mysticalwalrus
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@Awudu1844, Thank you my friend for all the support!
HHSPN
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I think you should change your handle name :-). Do you play other coins, illiquid ones that can have a moon shot in defi space, like SCUSD, BTTUSD. Can you plot them if you have time.
Please do your video on charting soon. TIA.
mysticalwalrus
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@HHSPN, LOL my handle is my old gaming username. If I did bad in a game, no one would say anything to me because my name already said I'm not good, and if I did well, it was funny. I made this account with it so I wouldn't have to remember another name. Sort of, I am long in ETH, ALGO, SOL, and ADA at the moment, but I have traded a handful of others as well. I only go long in something if I believe it has strong fundamentals. I am very strict on that, personally. But like I have said before, investing is a very personal pursuit. What is right for someone might be wrong for another person due to differing risk tolerances. I sure can! I will chart it for you tomorrow most likely! The next two week are nonstop for me in terms of studying and work, so I am planning to create the video after that. Stay tuned!