Today we'll talk about one of the strongest cryptocurrency projects - Cardano (ADA). In the previous idea, we expected the continuation of the ADA price movement in the consolidation in the form of a triangle:
However, the charismatic ADA decided to expand its consolidation range to 50%. The sharp drop in the ADAUSD price on February 23 to the mark of $0.92 and the same sharp buy-back of the price tell us about two facts:
1) there were many buyers in the ADA market, who banally prevented the price from continuing to grow.
2) In the range of $0.93-1 there is an aggressive buyer who is ready to absorb large volumes and keep the price above this range.
Another proof of these facts is the chart on a 3-minute timeframe:
As you can see, when the lower of the triangle was broken, a small number of buy stop orders were triggered. The main volumes and active purchases occurred precisely after the breakdown of the range of $0.96-0.98. In fact, the breakdown of the liquid range of $0.96-0.98 has selected the positions of all buyers who have been buying ADA since the end of February. Thus, the buyers did not fix their profit at the local highs in the range of $1.4-1.5, but fixed it below $0.96.
This situation increases the likelihood of breaking the current consolidation upwards and testing the global mark $2.
The main condition for this scenario is the price fixing above the range of $1.15-1.18. Retention of this range will confirm that the new wave of growth is unfinished.
The return of the ADA price to $1 will be a bad sign for buyers and means the likely continuation of the global correction in the ADA market.
We create both short-term ideas (for a local understanding of the market situation) and medium-term forecasts of price movements.
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