ADA/USD - Test of 1.00 Again, Possible Bottom 48-72 Hours
Updated
Hello friends!
Yesterday was an exciting day. Prices continued from the open at 1.17 down to 1.00 before rebounding to 1.24 and then falling again once support at 1.20 could not be established.
The earliest a bottom could start to form would be in 24 hours, but most likely downward momentum will continue until the weekend, as there will be downward pressure on BTC prices given the gap with futures and large value of options expiring.
Support was strong at 1.00 yesterday, but each test makes it harder to maintain that support. Today, ADA is likely to again retest 1.00, and could wick below it.
In another 24-48 hours it should become much clearer how long and deep this consolation may last. A bottom could start to form in that time in the daily chart, but will need time to cascade up to higher timeframes (3-5 days). I will wait for new candles in 24 hours to start looking at near and mid-term indicators.
Intraday
Summary: Test of 1.00 likely, with possible wick to 0.95
3H - White EMA came well above level 50 in the previous candle, while green closed at level 50. Downward pressure pushed down prices in the previous two candles, and prices never got to the yellow basis and instead bounced. This was also not enough to significantly raise the RSI and LSMA. Thus, prices can be expected to fall back towards the lower aqua B-band (1.08), and then to the lower orange B-band (0.98) if downward momentum continues.
6H - Similar to the 3H, the green EMA made an attempt to reach level, but has been unable to do so. Even if it had, the RSI was still too low for a rally to the yellow basis. Instead, looks like it will bounce. Prices are likely to return to the lower orange B-band (1.01) either in the first or second candle of the day without a rally.
12H - The first half of the day shows green rising, but the B-bands continue to expand as the LSMA falls. If B-bands were narrow, we might see sideways price action, but with bands falling in each candle, prices are likely to stay around the lower orange B-band (1.00) or a bit lower.
1D - Indicators in the daily chart continue to show all indicators descending except white EMA, which is rising. That, combined with the flattening of the very low green EMA suggests that downward momentum is slowing. RSI may not bottom out for another 48 hours. Until then, prices are likely to range around the lower orange B-band (1.05) or lower.
Good luck and good fortune!
Yesterday was an exciting day. Prices continued from the open at 1.17 down to 1.00 before rebounding to 1.24 and then falling again once support at 1.20 could not be established.
The earliest a bottom could start to form would be in 24 hours, but most likely downward momentum will continue until the weekend, as there will be downward pressure on BTC prices given the gap with futures and large value of options expiring.
Support was strong at 1.00 yesterday, but each test makes it harder to maintain that support. Today, ADA is likely to again retest 1.00, and could wick below it.
In another 24-48 hours it should become much clearer how long and deep this consolation may last. A bottom could start to form in that time in the daily chart, but will need time to cascade up to higher timeframes (3-5 days). I will wait for new candles in 24 hours to start looking at near and mid-term indicators.
Intraday
Summary: Test of 1.00 likely, with possible wick to 0.95
3H - White EMA came well above level 50 in the previous candle, while green closed at level 50. Downward pressure pushed down prices in the previous two candles, and prices never got to the yellow basis and instead bounced. This was also not enough to significantly raise the RSI and LSMA. Thus, prices can be expected to fall back towards the lower aqua B-band (1.08), and then to the lower orange B-band (0.98) if downward momentum continues.
6H - Similar to the 3H, the green EMA made an attempt to reach level, but has been unable to do so. Even if it had, the RSI was still too low for a rally to the yellow basis. Instead, looks like it will bounce. Prices are likely to return to the lower orange B-band (1.01) either in the first or second candle of the day without a rally.
12H - The first half of the day shows green rising, but the B-bands continue to expand as the LSMA falls. If B-bands were narrow, we might see sideways price action, but with bands falling in each candle, prices are likely to stay around the lower orange B-band (1.00) or a bit lower.
1D - Indicators in the daily chart continue to show all indicators descending except white EMA, which is rising. That, combined with the flattening of the very low green EMA suggests that downward momentum is slowing. RSI may not bottom out for another 48 hours. Until then, prices are likely to range around the lower orange B-band (1.05) or lower.
Good luck and good fortune!
Note
Update. Riding on a strong, broad crypto market rebound, ADA has had significant gains on the day we'll beyond what indicators suggested earlier in the day.However, it is not clear that the bottom is in. There is significant risk of prices falling back to 1.00 in the next few days as can be seen in the 3 day chart, which closes its candle later today. İndicators are likely to descend even further in the next candle. Also, Friday could be volatile due to futures and options gaps. Trade with caution
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