ADA reversal when?Hey everyone,
Here is a detailed analysis of Cardano . It has been in a downtrend since September first week. We might consider this downtrend as a correction if it takes support on the 0.786 level of Fibonacci . Let's get into the history of ADA and what happened in the past few weeks.
ADA retraced from the golden zone of Fibonacci of the previous wave and went for a new high at 3.097 USDT . Since then, it is in the downtrend. It has made some chart patterns too. Let’s look into it.
The Bearish Rectangle Formation
The rectangle figure is a trading pattern which can appear during bullish and bearish trends. The pattern consists of tops and bottoms, which are parallel to one another. The other key point to illustrate is that the highs and lows are all horizontal. I have shown the figure of the bearish rectangle at the top of the chart.
After recognizing the chart pattern, you have to wait for the breakout and pullback. The pullback candle should not close inside the rectangle. Once the pullback is done, you can see a massive downward movement. I have marked the pullback with a green eclipse.
We can set 2 profit targets for this pattern. First can be equal to the height of the rectangle and second can be equal to the length of the trend above the rectangle. I have marked the profit targets with the price range arrows .
Reversal When?
According to the trend-based Fib Time reversal , the trend might reverse around 26 December, if everything goes right. You can comment down if you wan to learn how to make it.
When to buy the dip?
According to me, you shall consider these 2 prices for the same:
1.46 to 1.55: It is the 0.786 level on Fibonacci with a major support and resistance zone.
1.02 to 1.21: This Is the zone between the previous low and the 2nd target of the bearish rectangle.
Does ADA have good fundamentals?
Ofcourse! Cardano’s purpose is somewhat same as Bitcoin’s purpose, but it is slightly faster in making payments. It works on blockchain, and it operates in 2 layers. The current market cap is around $50B and it was once ranked 3rd in the total market cap, which has now decreased to 6th. The social media following and team behind the project is also good.
Hope you like the idea. I might not be able to post the photos of analysis of different timeframes in the same idea, as I don’t have TradingView Premium. The reason for the same is that I’m a teenager and I’ve been trading the markets with the borrowed money from my parents. I can’t afford to buy the premium, hence I request TradingView to unlock some features for some traders like me.
Do check my previous education idea on cup and handle chart pattern through the link given below.
