The price has broken to the downside of the pattern while writing this chart. I have also noticed an ominous pattern forming which I will post later on today if it continues to form. It may retreat while I am writing this, but even so, that is not a good sign. Though there was more volume today for ADA, the price floundered and there was only selling volume that existed. Buyers are exhausted, and this is mainly due to the fact that no new high was reached like I said would happen if it didn't create a new high soon. Bulls like higher highs. Therefore, there is no reason to buy if there is no upward momentum behind it. If the price continues to push through, it will likely test the first major support level, if that holds, we will see consolidation and most likely more patterns form indicating a direction. But for now, this was a bearish signal. The next alerts you need to make are on the major support lines. If it does not hold, we will see a pullback to the second support line, etc.
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 recently. 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.
Tell me what you think?
This is not financial advice. DYODD.
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Right now the main support is 2.70 (being tested at the moment) Next support is 2.48. Next support that 2.2
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It is worth mentioning that many of you might think you see a bull flag forming, but think again. A bull flag is a continuation pattern and that is not the case here.
This is a better way to say thanks! I am learning and this is actually very helpful. Again, you constantly clear out my doubt. Cheers!
mysticalwalrus
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@ktrinh042, Wow!!!! Thank you so much Ktrinh! That is extremely thoughtful of you! I definitely did not see that coming at all! Let me know if there is something you would like me to chart for you! It could be a chart, or an opinion on something you were wondering regarding the money markets. Again, I really really appreciate very much!!!!
ktrinh042
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@imnotgoodatall, No worries mate! I just want to express my gratitude for the works that you've done. May I ask which books or courses did you learn to trade? I'm learning here and there but definitely need advice from an expert like you. Thank you so much!
mysticalwalrus
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@ktrinh042, Well, I really appreciate it to say the least! I have read a bunch of books but my favorite by far are High Probability Trade Setups by Tim Knight and Technical Analysis explained by Martin Pring. The latter of the two is basically a textbook and is extremely dense. You might want to start off with the first one to get your feet wet regarding patterns.
ktrinh042
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@imnotgoodatall, awesome thank you so muchhh! I will also wait for your educational video as well.
mysticalwalrus
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@ktrinh042, No, thank you! If you have any questions, you know where to find me!
Vascodegama
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Well thought out analysis and I concur. I wanted to see it test resistance and finally breakthrough. Alas, not today. I look forward to reading your next update related to the pattern formation. Thanks again!
mysticalwalrus
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@Vascodegama, Thank you so much for the support my friend! Yes, I agree I would like to see ADA hit 3.00 prior to September 12th, but I am not opposed to a pullback either. A pullback is needed for any uptrend. The ominous pattern I see is a descending triangle forming. It is not very large, but that tells me support will be tested short term.
Alt-B
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Yeah a bit of a disappointing day for ADA. Thought we had a good shot at new ATH. But for me it’s a marathon not a sprint. Continuing to hold
mysticalwalrus
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@Alt-B, Ya I agree, I am holding for 5 plus years at least. If I see a nice pullback, I enter and pick up more ADA. Other than that, I am just enjoying the ride.