What is Going on with ADA?
Actualizado
TLDR:
• If you are a holder/ long-term investor ADA is in a DCA zone, IMO.
• Short- term it is not clear, yet, if ADA has bottomed.
• Arguments for and against a bottom are mentioned below.
• Possible long trade mentioned below.
• ADA is a high-risk asset, at least for now, you need to be aware of it before considering a long.
Background:
• ADA lost its upward sloping support trendline on May 21st.
• ADA failed to reclaim the trendline and the 21D & 50D EMAs on May 28th.
• Following the SEC’s legal attack on ADA (among others), ADA’s price dropped more than 40% and made a new bear Market low.
• Currently it looks like ADA is Trying to form a bottom structure, but it is not clear if the bottom is in or not.
Arguments for a Bottom:
1. ADA is Extremely oversold.
2. ADA formed a Tweezer Bottom on the daily chart.
I admit that there is scant evidence of a bottom ATM. However, I don’t think it is wise to short an oversold asset. So, as far as I can see, the best approach is to sit and wait.
Arguments Against a Bottom:
1. ADA is below a weekly support level, flipped to resistance.
2. There is no rejection of lower prices. All I see is a consolidation below resistance which could go either way.
3. ADA left a huge wick to the downside (more than 20%). My experience shows that wicks get filled. Until at least 50% of the wick is filled, it is unlikely that the bottom is in. (You probably know who is teaching wick fills. Unfortunately, I cannot mention a name, or provide a link, as it is considered a promotion on the TV platform)
In short, there are better trades out there. However, if you are a believer and a long-term investor in ADA this could be an opportunity of a lifetime. Accordingly, I have long trade ideas for ADA.
Trade Idea No. 1:
• Entry: Between 0.2446 – 0.2168. You must wait for at least a partial wick fill and a clear rejection, with volume, to the upside.
• SL: Below the latest daily candle low.
• TP: 0.2756, 0.3188, 0.3780. Leave a moon bag.
Trade Idea No. 2:
• Entry: 0.2756. After retest as support.
• SL: below the daily candle.
• TP: 0.3188, 0.3780. Leave a moon bag.
NFA
What is your opinion? Please share in the comments.
Best wishes to all.
• If you are a holder/ long-term investor ADA is in a DCA zone, IMO.
• Short- term it is not clear, yet, if ADA has bottomed.
• Arguments for and against a bottom are mentioned below.
• Possible long trade mentioned below.
• ADA is a high-risk asset, at least for now, you need to be aware of it before considering a long.
Background:
• ADA lost its upward sloping support trendline on May 21st.
• ADA failed to reclaim the trendline and the 21D & 50D EMAs on May 28th.
• Following the SEC’s legal attack on ADA (among others), ADA’s price dropped more than 40% and made a new bear Market low.
• Currently it looks like ADA is Trying to form a bottom structure, but it is not clear if the bottom is in or not.
Arguments for a Bottom:
1. ADA is Extremely oversold.
2. ADA formed a Tweezer Bottom on the daily chart.
I admit that there is scant evidence of a bottom ATM. However, I don’t think it is wise to short an oversold asset. So, as far as I can see, the best approach is to sit and wait.
Arguments Against a Bottom:
1. ADA is below a weekly support level, flipped to resistance.
2. There is no rejection of lower prices. All I see is a consolidation below resistance which could go either way.
3. ADA left a huge wick to the downside (more than 20%). My experience shows that wicks get filled. Until at least 50% of the wick is filled, it is unlikely that the bottom is in. (You probably know who is teaching wick fills. Unfortunately, I cannot mention a name, or provide a link, as it is considered a promotion on the TV platform)
In short, there are better trades out there. However, if you are a believer and a long-term investor in ADA this could be an opportunity of a lifetime. Accordingly, I have long trade ideas for ADA.
Trade Idea No. 1:
• Entry: Between 0.2446 – 0.2168. You must wait for at least a partial wick fill and a clear rejection, with volume, to the upside.
• SL: Below the latest daily candle low.
• TP: 0.2756, 0.3188, 0.3780. Leave a moon bag.
Trade Idea No. 2:
• Entry: 0.2756. After retest as support.
• SL: below the daily candle.
• TP: 0.3188, 0.3780. Leave a moon bag.
NFA
What is your opinion? Please share in the comments.
Best wishes to all.
Nota
What is going on with ADA? well, nothing.i will keep monitoring ADA and update if I see a change.
I don't think it is a short, too oversold.
Operación activa
Check my LTF updates. ADA is beginning to turn around
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