Thank you for your interest in our previous analysis which identified a cup and handle bullish signal on the 1H-4H charts.
We are still seeing the cup and handle setup as a valid bullish signal, despite the handle extending dramatically to the right in sideways, downward price action.
I will quote Investopedia to refer to the possible market psychology behind the price action at the moment.
"The tables turn once again when the decline stalls high in the broad trading range, giving way to narrow sideways action. Short sellers lose confidence and start to cover, adding upside fuel, while strong-handed longs who survived the latest pullback gain confidence. Relative strength oscillators now flip into new buy cycles, encouraging a third population of longs to take risk. A positive feedback loop sets into motion, with price lifting into resistance, completing the final leg of the pattern and breaking out in a strong uptrend."
Although we are seeing typical low volume over the weekend, we still hold bullish bias for ADA, as long as the support holds in our given ranges.
That is however, just a technical analysis.
We are still seeing the cup and handle setup as a valid bullish signal, despite the handle extending dramatically to the right in sideways, downward price action.
I will quote Investopedia to refer to the possible market psychology behind the price action at the moment.
"The tables turn once again when the decline stalls high in the broad trading range, giving way to narrow sideways action. Short sellers lose confidence and start to cover, adding upside fuel, while strong-handed longs who survived the latest pullback gain confidence. Relative strength oscillators now flip into new buy cycles, encouraging a third population of longs to take risk. A positive feedback loop sets into motion, with price lifting into resistance, completing the final leg of the pattern and breaking out in a strong uptrend."
Although we are seeing typical low volume over the weekend, we still hold bullish bias for ADA, as long as the support holds in our given ranges.
That is however, just a technical analysis.