I 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.
Thank you for taking the extra time and space to explain your charts. I have learned so much from your analyses that your posts are the first and last read of my trading day.
I also look forward to the video you are woking on. You have a gift for teaching and I am an eager student. Thank you for sharing it with us.
mysticalwalrus
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@suzrock, Thank you so much! I really appreciate all the support and the kind words! I will be working on the videos soon! Stay tuned!
sebtro
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I'm new to crypto trading (been holding long term) and I've learnt a lot from you the last weeks. Thank you!
mysticalwalrus
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@sebtro, Thank you so much! That is awesome to hear! Keep holding long term! Best thing you can do! Keep up the good work!
SMASHHH96
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Looking forward to learning more analysis from your up coming video!
mysticalwalrus
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@smittyman96, Thanks so much for the support! To be honest, I'm looking forward to making it!
ScamPump
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This asset just trades on whatever BTC is doing, nothing less, nothing more.
I look forward to your posts, as a newbie. They are quite helpful, and informative.
Graphing ADA at this point seems pointless as its just following BTC no matter what. Its quite annoying honestly. Em i wrong?
mysticalwalrus
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@mrryanhansen25, Interesting perspective! Thank you for sharing! Also, thank you for the support! I appreciate it. However, I disagree that is it just following BTC. If you open the ADAUSD chart, then click the compare button, you will see what I mean. That being said BTC does have a huge influence on the market in general due to its market cap.
ScamPump
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@imnotgoodatall, It was kind of a question. As i am new, and this is what im seeing? thoughts?
mysticalwalrus
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@mrryanhansen25, Sorry I did not see the last 2 lines of your post. if you refresh, you should see the answer. However, I am not sure the pro version is able to compare charts (I would think it could, but I have only had premium). Open the ADAUSD chart, at the top click compare, type BTCUSD, and you will see what I mean. This is mainly due to smart contracts being announced. I could make a whole post on why BTC is dated and ETH, ADA, SOL, and others will eventually take more and more of the market share. I personally believe alt coins with good fundamentals are going to be far better investments in the future. I hold some BTC, but not much. I hope that helps, if you have any other questions, let me know!
I also look forward to the video you are woking on. You have a gift for teaching and I am an eager student. Thank you for sharing it with us.