ADA Makes Small Gains Market SidewaysI have been in a bit of a time crunch lately and realized that I made some mistakes that might not have mattered to someone that understands technical analysis, however it would completely confuse a beginner. Since, I assume I have some beginners here, I decided to take some extra time out of my day, slow down, and explain what I see properly. This way, it will avoid any undue confusion, because that is the last thing I want to do. If you want to understand why the gains are so small, and we are seeing bullish and bearish patterns, you have to take a look at BTC. BTC has been trading sideways for about 2 weeks now. When an asset is trading sideways it becomes vulnerable to price movements by either bears or bulls, and really, there is no way to tell which way it is going to go. Traders hate sideways markets the most due to their unpredictability. So, that being said, it is taking the steam out of a lot of assets. Now lets look at ADA, you can see the slope of ADA is beginning to flatten, this means it is losing steam and its bull run is coming to and end. This can always change depending on the direction of the market, but right now, people are reluctant to trade when the market is sideways. Not to mention the ascending wedge that is forming, which is letting you know a pullback is on its way. However, like I said in my last chart, this happens very slowly, and usually takes more than 2 major higher highs and 2 higher lows to occur. The important thing to know is that a pullback is likely on its way. That being said, there is a possibility that ADA can reach the target between 2.16 and 2.24. That is not very far from its last high. However, unless I see another sign like a change in the overall market direction, I will assume a pullback. So if you think about it, the risk reward isn't too good if you are entering ADA at this point. We are looking at smaller highs, a flattening slope, tiny highs, an ascending wedge, and overall market uncertainty. On Sep 15th El Salvador will make a decision whether or not BTC becomes legal tender. That is important to note. Another important thing to note is that there are likely people holding out on ADA until they see smart contracts released live on the 12th, I expect a small bump from that. The most important thing here is the overall market and the signs. I expect ADA to keep consolidating, however if there is a break below the 200MA, watch it carefully, and I mean that. I will continue to update you on this as much as I can. Again, I apologize for any confusion from my last post and I hope this helps clear things up.
Now for some good news. As a person who follows ADA closely, I know that the adoption of the platform will happen very quickly with the release of smart contracts on the 12th of September. In fact, I think it was built with such a great foundation, I might just do an entire post on the fundamentals of Cardano sometime in the future. Pretty soon, we will see NFTs being created, DeFi, applications being developed, and overall strong adoption of the ADA blockchain platform as a whole. If there will be any immediate reason for ADA to move higher, it will likely be news coming from the summit on the 25-26 of September. So I would keep an eye on their twitter accounts around that time.
Again, I apologize for having less time to post at the moment, but that will change in a couple weeks.
I am going to make a video soon teaching everyone my approach to charting. I will cover the entire workflow process I go through. I hope you enjoy it.
Tell me what you think?
This is not financial advice. DYODD.
