ADA / USDT technical analysis [BINANCE]
ADA seen from the temporality of 1D we can see how the current structure of candles has formed a figure of a descending wedge, this type of pattern has a reliable break up, the more you contract the price within the figure, the more “explosive” is the price advance after the break, in this pattern we see how the ADA price has reached the wedge zone of the figure, so we should expect a strong break when this happens, yet the price has not tested resistance, the daily candle has successfully closed above the key support located at 0.04496, we could have a small backward movement to this support and then continue with the bullish movement, in the chart above I traced through two diagonals purple figure and I have also placed the profit targets, if the price achieves the break of the pattern.
ADA seen from the temporality of 4H we can see how the current candle is showing a retracement in the price that could reach the horizontal plotted on the black chart, located at 0.04619, if the candle goes back to this point, it is possible that we mark a long wick below that support, however, the body of the candle should close at the top to continue with the next point of the bullish pattern, in the chart I have drawn a diagonal in blue that marks the bullish pattern the current movement, we should have a third HH that touches the diagonal or approaches that diagonal and then have a brief correction to the support located at 0.04619, thus drawing a double floor that should lead us to the objectives outlined in the 1D chart, in the image above I have also drawn the trajectory of movement, this type of movements are very common during the advance of a trend, so you can speculate this way the trajectory, however, nothing is 100% certain in the market.
In conclusion, ADA presents the same trend reversal pattern as many other currencies in the market, BTC is in an excellent moment with very good fundamentals, and its chart is shown with greater probabilities of continuing to rise in the short and medium term, if this does not change, we will see this currency and many more achieve the objectives I have outlined above in the chart, the best buying area would be the support located at 0.04619 or a little lower looking for the wick below the support, I recommend to be very attentive to the action of the price of both this currency and the BTC price.
As I always say, you have to be aware of the movement, invalidations can occur, there is no 100% reliable analysis, take your own precautions when trading.
You can follow me on Twitter: https://twitter.com/armijogarcia
My profile in TIMM: https://mentormarket.io/profile/?mrbullishsail/blogposts
Congratulations @funnyday! You received a personal award!
You can view your badges on your Steem Board and compare to others on the Steem Ranking
Vote for @Steemitboard as a witness to get one more award and increased upvotes!