Yesterday indicators started to show less downward momentum, but prices were still likely to go sideways for the coming days. By the end of the day there was a slight upward bias with prices up a tick at 1.20, rather than 1.18. There was no clear signal of a forthcoming spike in prices, but downward pressure was slowing making any potential spike more possible.
Abruptly today, we experienced a spike in prices from 1.20 to 1.33, testing the channel that we have been in for about a month. The last time we saw a spike to this level was this was March 18, when consolidating from the second attempt at an ATH.
So is ADA finally breaking out of the channel to the upside? The next several hours will give us a clearer idea, but for now it looks that the 1.30 region is as high as this current rally may go. ADA has not definitively broken the channel. Without a change in fundamentals and with volumes still very low, there just is not enough demand to keep pushing up prices.
If 1.30 could be held for 24 hours as the new support level, then we might say that the channel is broken and ADA is setup to take a run at 1.45 again, which is the real breakout we want. If not and prices drop back to 1.25 or even 1.20 then we know that the rally was rejected at 1.30 and we are back in the middle of the channel, though possibly at a higher price level.
As I publish this it currently looks as though 1.30 cannot be held and prices will return to the middle of the channel. If so, this is not the breakout we've been impatiently waiting for.
Today's spike does provide optimism. It's the first such spike in weeks. Downward momentum looks to be decreasing, meaning that we may be near to a reversal. Until we can confirm a reversal, we cannot rule out a drop in price, now it may be less likely and less deep if it does happen.
More analysis at the start of tomorrow's new daily candle.
Good luck and good fortune!
Abruptly today, we experienced a spike in prices from 1.20 to 1.33, testing the channel that we have been in for about a month. The last time we saw a spike to this level was this was March 18, when consolidating from the second attempt at an ATH.
So is ADA finally breaking out of the channel to the upside? The next several hours will give us a clearer idea, but for now it looks that the 1.30 region is as high as this current rally may go. ADA has not definitively broken the channel. Without a change in fundamentals and with volumes still very low, there just is not enough demand to keep pushing up prices.
If 1.30 could be held for 24 hours as the new support level, then we might say that the channel is broken and ADA is setup to take a run at 1.45 again, which is the real breakout we want. If not and prices drop back to 1.25 or even 1.20 then we know that the rally was rejected at 1.30 and we are back in the middle of the channel, though possibly at a higher price level.
As I publish this it currently looks as though 1.30 cannot be held and prices will return to the middle of the channel. If so, this is not the breakout we've been impatiently waiting for.
Today's spike does provide optimism. It's the first such spike in weeks. Downward momentum looks to be decreasing, meaning that we may be near to a reversal. Until we can confirm a reversal, we cannot rule out a drop in price, now it may be less likely and less deep if it does happen.
More analysis at the start of tomorrow's new daily candle.
Good luck and good fortune!