Price has tested main support Price has tested 200MA Basing pattern may form, watch for handle BTC's movement upward to 55k is allowing ADA to consolidate at support If new high is created we will have perfect ascending wedge New trendline created with lowered slope My upside target is 3.16-3.24 (profit taking) My downside target is 2.5-2.2 (entering)
Important Dates to Take Note of:
BTC becomes legal tender in El Salvador Sep 7 2021 (3.5 hours from now) ADA Alonzo (smart contracts) go live Sep 12 2021 ADA Summit Sep 25-26 2021
I must keep this a little shorter than normal because I am currently strapped for time. If we look at the chart, we can see ADA has tested the main support level and has been denied which has caused ADA to start forming a basing pattern. However, it has also tested the 200MA and got rejected with a long wick. This consolidation is due to the fact that BTC is on the way to test the 55k level at the moment. If you take a look at the chart you will see that this is the same thing that happened Sep 1st. If consolidation is allowed to continue, ADA will form a basing pattern which it can use as a springboard to a new high. This means I may get my 3.16 - 3.24 minor target to pinch some profit from. However, this new high will also create a perfect ascending wedge which will let us know that ADA is overdue for a pullback (if you couldn't tell already by the trendline break). So that being said, there may be a tad bit more juice left in ADA at the moment before it decides to pullback, which it surely will at some point. Let's say BTC fails at closing above 55k, this may be the catalyst for the pullback so if you are worried about it, just set an alert at your support level. If the price crosses support, wait for confirmation before making any rash decisions. I will continue to watch ADA and update you regarding the price movements. Keep an eye on the basing pattern and set an alert for the main support!
Also, it is worth mentioning that TradingView has reached out to me and offered me very kind words, and showed me some support. I thought that was very nice of them and it was very unexpected. Though, I never planned for any of this to happen at all. I was constantly making charts for myself and my friends and some of them suggested I post them publicly. I never imagined any of this would happen, if I did, I would have waited until I had a bit more free time LOL. However, it makes me really happy to know that people are learning from my charts and hopefully it will encourage you all to learn technical analysis for yourselves! In a couple weeks I will have more time to make the educational content you have been asking for, and I will likely chart a wide spectrum of assets. Thank you again for all of the support, it means more to me than you know!
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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We are at a critical moment right now to see if the basing pattern will start to fill out or the support at 2.8 will break. The candle produced the last hour created a hammer with a long wick which was immediately denied on this hours candle. We will see what happens! Stay tuned and set those alerts!
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And there is goes, support has broken.
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Now, that is what you call engulfing.
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If you are wondering why the movement went so quick, the simple answer is people use sell limits set on whatever trading platform they are using. Once the price broke support, it triggered the sell. I will make sure I cover these things in my videos, including how to trade long, swing trading, pairs trading, commodities and advanced option trading strategies for example various spreads etc.
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Can anyone guess what pattern is forming on the 1h chart? Ok, now I am going to sleep.
@mickodonegan, No problem! That was amazing! That is exactly what I meant when I called it a house of cards in a comment on my last chart. I was lucky I have one eye on the chart and the other on my studies, so I could catch it right before it happened.
tothebook
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Can you provide another update post these drops? Wondering if I should hold or if this will drop to the 1.80 area
mysticalwalrus
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@tothebook, I just put out an update on what I think will happen. That would depend if you are long on ADA. For future reference, when you sell or take profits, you do it at a resistance level (ideally at a point that fails to create a new high). Since I do not know what price you entered at, I will tell you this: I would never take a loss. I would hold until I had to.
ADAicted
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what an oportunity! thanks for the great TA!!!
mysticalwalrus
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@ADAicted, Thank you so much! Amazing price movement!
mickodonegan
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I got so caught up in the price movement that I failed read your piece about TradingView reaching out to you. Well done and believe me, any respect or recognition you get is richly deserved, so rare to meet someone who is so generous with giving their time and knowledge to imperfect strangers like us!
mysticalwalrus
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@mickodonegan, Thank you for all the of the kind words and support! I appreciate it! Yes, though it was completely unexpected, I thought it was very nice of them!
RosaLola
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Thank you again for sharing this. I’m waiting for that 2.5 level to enter. Great work!
mysticalwalrus
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@RosaLola, Thank you!!! This was quite the pullback!