As forecast in my previous idea, ADA/USD has dropped to the 1.11 fib and tested it several times with wicks as low as 1.06. For now support at 1.11 is holding, keeping prices sideways. But support is showing increasing weakness. This is not a confirmation yet, but a growing possibility that opens various trading opportunities.
In the 3 Day chart, the white EMA has again crossed blow level 50. While the Red RSI and Blue LSMA continue to decline, the green EMA has sharply moved down towards level 50. If it crosses below level 50 (especially if it closes below 50) while the RSI is below 80, then the odds are very high of prices going to the yellow basis line. In the next 3 Day candle, starting in 2 days, we can expect the basis to be around 0.97.
In the 1 Day chart all indicators are below 50 and descending, indicating strong downward momentum. Unless there is a strong reversal, this is setting up further downward movement to the 1.00 region in the coming days (or sooner).
Key levels to watch if the 1.11 fib region breaks to the downside:
- 1.08 has a bit of support
- 1.05 has psychological support
- 1.035 is the next lower fib
- 1.00 has previously shown strong support
A break below 1.00 would likely move us to the 0.89 region.
Good luck and good fortune
In the 3 Day chart, the white EMA has again crossed blow level 50. While the Red RSI and Blue LSMA continue to decline, the green EMA has sharply moved down towards level 50. If it crosses below level 50 (especially if it closes below 50) while the RSI is below 80, then the odds are very high of prices going to the yellow basis line. In the next 3 Day candle, starting in 2 days, we can expect the basis to be around 0.97.
In the 1 Day chart all indicators are below 50 and descending, indicating strong downward momentum. Unless there is a strong reversal, this is setting up further downward movement to the 1.00 region in the coming days (or sooner).
Key levels to watch if the 1.11 fib region breaks to the downside:
- 1.08 has a bit of support
- 1.05 has psychological support
- 1.035 is the next lower fib
- 1.00 has previously shown strong support
A break below 1.00 would likely move us to the 0.89 region.
Good luck and good fortune