Paraman666
Short

ADA/USDT - super nasty ABC exp. flat correction in progress ?

BINANCE:ADAUSDT   Cardano / TetherUS
When price is going impulsively down, making new low, then bouncing and then going immediatelly impulsively up, in most cases it´s not the beginning of uptrend, but we are dealing with expanded flat correction . What are the criteria for such a correction ? Well, since Cardano has been in downtrend for 2 years, the criteria for this correction in case of cardano are :
1) 3 wave move to the upside (the blue ABC cycle on the chart)
2) 3 wave move to the downside, BREAKING previous low ( ABC wave cycle in that orange box )
3) 5 wave move to the upside, breaking previous high and hitting 1.618 of fib. extension of wave A (purple zone on the chart)

So far, everything really fits for that correction and if we see 5 wave rejection from that purple box, then Cardano will be heading below 0,18 USDT. So probably super SHORT opportunity coming.
Comment: Despite we have nice rejection from the purple zone, it doesn´t look like 5 wave impulse rejection, so uptrend on ADA will very likely continue.
Trade active: Well, ADA continued in ABC moves to the downside and it really looks like falling wedge, BUT in Eliott wave perspective it´s called leading diagonal, made of 5 subwaves, each one must be ABC. So acutally now there is potential, that ADA set the ultimate top before big sell off, but it´s hard to tell it right now, we should be testing that lower trendline of the channel and if we get impulsively down, then retest it and create big 5 wave cycle to the downside, then ADA is finished. I am currently in SHORT. If I see strong bounce from the channel, I will exit my short.
Trade active: As I predicted, we pretty much hit that lower trendline of the channel and I think the correction is now finished. I am currently out of short and I opened LONG. So it looks like, that scenario with that ABC flat and going to new low from now is out of table.
Update:

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