What is Going on with ADA?
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.
Trade ativo:
Check my LTF updates. ADA is beginning to turn around
i will keep monitoring ADA and update if I see a change.
I don't think it is a short, too oversold.