Main Trendline Broke Price has created a bear flagging pattern Price is deciding whether to consolidate or move downward First main support is around 2.8 Second main support is around 2.5 Third main support is around 2.2
Important Dates to Take Note of:
BTC becomes legal tender in El Salvador Sep 7 2021 ADA Alonzo (smart contracts) go live Sep 12 2021 ADA Summit Sep 25-26 2021
ADA has broken its main trendline which is a bearish signal of a pullback. It has created a bear flag pattern and if you look at the 4 hr, you can see double dojis which makes perfect sense to me because it is signaling a continuation of the pullback. However, this may change as things unfold, so you should keep an eye on the 4hr chart right now. Timing matters right now. BTC looks to become legal tender which will occur approximately 12 hours from now. This can add some needed energy into the market, or it can fizzle out, either way, it is worth mentioning. If the price breaks the main support, you can assume that it is heading to the next support level, which I have noted on the chart. I suspect, it will continue to pullback. However, I do not think it will happen very fast. You should set alerts for the support levels mentioned so you can respond accordingly, if you need to. If it pulls back to 2.5, that will be good enough to push forward. Remember, every bull cycle requires a bear cycle and every uptrend requires a pullback. I will continue to keep an eye on the price movements of ADA and continue to update you.
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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ADA is getting helped by BTC in a major way right now. It looks like BTC is going to continue trying to hit 55k as it looks very bullish right now with a bull pendant. That being said, If ADA stays at the main support long enough, it will gain the momentum to push forward. However, that would be a very minor target and it can only keep that up for so long. If you are not careful, any major pullback by BTC will cause the house of cards to fall in the case of ADA.
Much appreciate the your detailed analysis and explanations coming from a newbie to TA! Learning a lot. Looking forward to you videos.
mysticalwalrus
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@Vascodegama, WOW! Thank you so much for the donation!! I truly appreciate all of the support you provide! I am extremely pleased that you are learning from the charts I provide! I am looking forward to making the videos as well! If you have any questions or would like me to chart something for you, please let me know and I will take care of it! Thank you again, it is much appreciated my friend!
Thanks for the update. My thoughts exactly re: the house of cards of ADA.
mysticalwalrus
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@Vascodegama, Yes, if there is one more higher high and we will have a textbook ascending wedge. Like I said before, I am completely happy with taking a bit of extra profit at 3.16 - 3.24 before entering at a very nice pullback at 2.2. That is my ideal scenario. Thank you for the support my friend!
tothebook
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Thoughts on how smart contracts play into this analysis? ty in advance much appreciated
mysticalwalrus
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@tothebook, I do not believe smart contracts play a meaningful role into this particular analysis since it is very short term. I believe the announcement of smart contracts has been mostly priced in already. However, though I believe there are some people holding out on entering ADA until smart contracts are officially released, that amount is too much of an unknown for me to include it into my charting. Personally, I believe we will see a small bump in price during the release of smart contracts, but the major impact of the smart contract release will be felt long term due to the innovation that springs from it. Thank you very much for your support!
ktrinh042
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Another solid TA from Sean. Thank you so much!!!
mysticalwalrus
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@ktrinh042, Thank you so much! I appreciate all of the support! Since ADA is heading into a bit of uncertainty, if you have any questions let me know!