For the past few days we have been consolidating outside of the bullish wedge formation. However consolidation soon converted into another bullish continuation pattern which is a great signal towards a bullish shift. The following confluences will be displayed below on why i am at a bullish bias on this current market.
NB! One thing to know about formations on a larger time frame is that they are usually quite accurate in comparison to smaller time frame formations therefore the probability of a larger time frame formation breaking out towards its target point (TP) are surprisingly higher than smaller time frames. However when confirming a breakout and looking for more reason to be confident you search for patterns within smaller time frames, this way you add one more strong point of confluence to your confidence in your prediction.
1) Fibonacci retracement (bullish): The price is currently sitting above the 50% fib retracement level of support, in order to be confident in the short term bullish play, the price needs to stay above this support which sits at $1.36. There is a possibility that the price could fall below for a short while just in order to bounce off the support of the larger wedge formation in order to theoretically complete the formation. The next level of resistance sits at $1.60, which happens to be the TP of the current short term triangle pattern we are in, which will be explained in more detail below.
2) Triangle formation: on the smaller time frame we are current within a triangle formation, which theoretically is a continuation pattern using the flagpole as the indicator for the target point which is shown on the chart as a yellow dashed line indicated by the text TP. Therefore the possibility for this situation to play out is high based on how often this same formation plays out how it is suppose to as it is a phycological formation which has proven to repeat itself, especially in this specific situation where we have recently broken out of a larger formation. My prediction for the short term is the TP ($1;60).
3) bullish wedge formation: This formation speaks for its own. The formation has played its role and now relies on the multiple levels of support and resistance leading to the target point in order to achieve that level, The target point sits at $2;39 which may sound unrealistic, BUT it really is not as the price will not get there in one day and in one push, but rather it will take the move in a sequence of steps, in a basic explanation, the move will be compiled out of a group of formations and consolidation areas which could go on for weeks. This might sounds boring to some but it is great for keeping ADA stable and making sure the price is not over extended and stays within the confines of its true value.
This area i am calling the bottom or consolidation phase is coming to an end and another confluence for that is based on the fact that the narrative is shifting as i have discussed before. For ADA huge news is around the corner and will fit perfectly into the current undervalued price and current reversal signals. I expect high prices for ADA and the rest of the crypto market in the following weeks. July is going to be a big one!
Give me your opinion on ADA's current situation, would love to hear some other perspectives. Don't forget to like and follow for more basic and easy to understand crypto analysis for all levels of retail traders.
NB! One thing to know about formations on a larger time frame is that they are usually quite accurate in comparison to smaller time frame formations therefore the probability of a larger time frame formation breaking out towards its target point (TP) are surprisingly higher than smaller time frames. However when confirming a breakout and looking for more reason to be confident you search for patterns within smaller time frames, this way you add one more strong point of confluence to your confidence in your prediction.
1) Fibonacci retracement (bullish): The price is currently sitting above the 50% fib retracement level of support, in order to be confident in the short term bullish play, the price needs to stay above this support which sits at $1.36. There is a possibility that the price could fall below for a short while just in order to bounce off the support of the larger wedge formation in order to theoretically complete the formation. The next level of resistance sits at $1.60, which happens to be the TP of the current short term triangle pattern we are in, which will be explained in more detail below.
2) Triangle formation: on the smaller time frame we are current within a triangle formation, which theoretically is a continuation pattern using the flagpole as the indicator for the target point which is shown on the chart as a yellow dashed line indicated by the text TP. Therefore the possibility for this situation to play out is high based on how often this same formation plays out how it is suppose to as it is a phycological formation which has proven to repeat itself, especially in this specific situation where we have recently broken out of a larger formation. My prediction for the short term is the TP ($1;60).
3) bullish wedge formation: This formation speaks for its own. The formation has played its role and now relies on the multiple levels of support and resistance leading to the target point in order to achieve that level, The target point sits at $2;39 which may sound unrealistic, BUT it really is not as the price will not get there in one day and in one push, but rather it will take the move in a sequence of steps, in a basic explanation, the move will be compiled out of a group of formations and consolidation areas which could go on for weeks. This might sounds boring to some but it is great for keeping ADA stable and making sure the price is not over extended and stays within the confines of its true value.
This area i am calling the bottom or consolidation phase is coming to an end and another confluence for that is based on the fact that the narrative is shifting as i have discussed before. For ADA huge news is around the corner and will fit perfectly into the current undervalued price and current reversal signals. I expect high prices for ADA and the rest of the crypto market in the following weeks. July is going to be a big one!
Give me your opinion on ADA's current situation, would love to hear some other perspectives. Don't forget to like and follow for more basic and easy to understand crypto analysis for all levels of retail traders.