This is pure speculation and I'm not a financial advisor. I'm just a college student who holds about 12000 ADA my goal is to get to 21000 ADA and cashout at around $4.8 with about $100,000 profit.
I have patiently waited for ADA to go break the resistance at $1 but it seems it's not going to be as immediate as I hoped. The crypto market is very volatile as such crazy gains come with crazy drops. ADA has more than 3x within the last 30 days at such a price correction before the next run seems reasonable.
The price movement of ADA within the past 7 days has been following and breaking out of the resistance in channels to set new 4 years high as it approaches its ATH. But from the chart, you can see that the price movement has deviated from this routine and the support has failed to hold in the channel shown with the dash blue lines on the chart.
I also observed that the price movement might have just begun to form a symmetric triangle with higher lows and lower highs.
From the chart, there are 2 possible symmetric triangles that could play out;
1. The symmetric triangle formed by the yellow resistance line and the yellow possible support line. if This is the case, I expect the price to drop as low as about $0.819 before reversing in an upward direction. A breakout from the triangle will take the price to about $1.15 - $1.20.
2. The symmetric triangle formed by the yellow resistance line and the red support line which I expect to be the bottom. If this is the case, I expect the price to drop as low as $0.70 before reversing in an upward direction. A breakout will take us to about the same price target as the first scenario.
Things I have done/Strategy:
1. I sold my ADA at my SL of $0.88
2. I have set a buy order at about $0.8199
3. I have set a price alert of $0.9750 in case all of this does not happen. At 0.9750 the price would have broken out of this assumed triangle. when that happens I will buy back in and enjoy the profit ride. I might end up not making as much profit as I would have if I didn't sell at 0.88 but from my risk management it's worth the gamble, the only thing I have to lose is profit.
4. In case of things turn out the way I have anticipated when I buy at $0.8199, I will set a new SL at $0.75 if the SL is executed I will set my buy order at $0.70
I have patiently waited for ADA to go break the resistance at $1 but it seems it's not going to be as immediate as I hoped. The crypto market is very volatile as such crazy gains come with crazy drops. ADA has more than 3x within the last 30 days at such a price correction before the next run seems reasonable.
The price movement of ADA within the past 7 days has been following and breaking out of the resistance in channels to set new 4 years high as it approaches its ATH. But from the chart, you can see that the price movement has deviated from this routine and the support has failed to hold in the channel shown with the dash blue lines on the chart.
I also observed that the price movement might have just begun to form a symmetric triangle with higher lows and lower highs.
From the chart, there are 2 possible symmetric triangles that could play out;
1. The symmetric triangle formed by the yellow resistance line and the yellow possible support line. if This is the case, I expect the price to drop as low as about $0.819 before reversing in an upward direction. A breakout from the triangle will take the price to about $1.15 - $1.20.
2. The symmetric triangle formed by the yellow resistance line and the red support line which I expect to be the bottom. If this is the case, I expect the price to drop as low as $0.70 before reversing in an upward direction. A breakout will take us to about the same price target as the first scenario.
Things I have done/Strategy:
1. I sold my ADA at my SL of $0.88
2. I have set a buy order at about $0.8199
3. I have set a price alert of $0.9750 in case all of this does not happen. At 0.9750 the price would have broken out of this assumed triangle. when that happens I will buy back in and enjoy the profit ride. I might end up not making as much profit as I would have if I didn't sell at 0.88 but from my risk management it's worth the gamble, the only thing I have to lose is profit.
4. In case of things turn out the way I have anticipated when I buy at $0.8199, I will set a new SL at $0.75 if the SL is executed I will set my buy order at $0.70