Let’s have look at the Daily Chart for ADA. The Bollinger Bands are showing that Volatility is slowing, because the Lower Band is starting to turn inwards. The RSI is indicating Sideways Momentum in the overbought area, again that doesn’t mean ADA will come crashing down as it could continue moving sideways in that area. The ADX (Yellow Line) is at 46.9 and well above its 10 Period SMA which is at 29.2. The +DI (Green Line) is at 31.3 & above the -DI (Red Line) which is at 3.1 indicating we are still in a long-term uptrend. All of the Ichimoku Cloud System (Kumo) indicators are also indicating Sideways momentum in the Bullish Zone. At the moment ADA is bouncing between it 10EMA and 50EMA on the 1hr chart, ideally, we want to stay above the 50EMA on the 1hr. But the Q is, if ADA does drop, where could it drop to? If ADA does break below its 50EMA on the 1hr and if the 100EMA also fails on the 1hr chart, then ADA could drop to its 8EMA on the daily, if that failed, then it could drop to its Conversion Line (Tenkan Sen) which is also where is 10EMA is roughly located which is roughly where its 200EMA on the 1hr chart is located. I say roughly because EMAs & the Conversion Line (Tenkan Sen) will adjust if the price is going up or down. That level is also where its Pitchfork Hagopian Line is running through so that is a real key area on the daily. What hasn’t been helping, is that a lot people are exchanging their ADA for BTC. A worse case scenario, hypothetically speaking of course, if ADA does have a bad crash, ideally we want to stay above and find strong support above the Bollinger Bands Middle Band Basis on the daily chart. But if we do drop, i think it will only be to the Conversion Line (Tenkan Sen) on the daily so around $5.8 - $5.5 but again this is hypothetically speaking. I personally believe that a drop to the 8EMA, 10EMA or Conversion Line (Tenkan Sen) level on the daily, wouldn’t actually be a bad thing as it would allow people to buy at lower prices and also help with consolidation before the next leg up, but at the moment it looks like ADA will continue trading sideways above the 50EMA on the 1hr until the majority of people get board with BTC. So, key things to watch out for are, if ADA closes BELOW its 50EMA on the 1hr chart, & if ADA closes a 1 day candle ABOVE its Pitchfork Median Line on the daily chart. Remember that ADA is still in a longterm uptrend and needs to drop a long way to reverse that, we have the Goguen Update in March which will enable ADA to fully compete with Ethereum’s DeFi market, so the way i see it, if ADA does dip, use it as an opportunity to accumulate more at a cheaper price 👍. I hope this is helpful 🙏
Comment:
FYI 🔥🚀🌔
