ADA - New, but weak, upward trend established

3 ก.พ. 2018

ADA has taken a battering over the last few weeks, which was to be expected after record highs. However, the natural pullback coincided with the sharp downturn in Bitcoin (and therefore the crypto market as a whole), resulting in a near free-fall in prices (45% in the last month).

However, ADA has established a new short-term upward trend, which has been confirmed via multiple signals. This should be taken with a high degree of caution, given the overall downtrend being experienced. The early signs are there of a strong recovery, but ideally we want to see stronger signals, and something akin to a breakout, before declaring a trend reversal. ADA is also linked to the wider fate of the crypto market, so a Bitcoin crash to 5.4k (50/50 possibility) would likely result in ADA following suit downwards.

I'm providing this analysis not to generate any buy signals (yet), but simply to put this on people's radar. ADA has the potential to retrace a significant amount given overall interest in the coin, which could present strong opportunities over the coming days or weeks. I highly recommend putting this one on your radar and doing your own due diligence, but be sure to confirm a trend reversal before placing a trade. You're better off missing out on 5% of profits than risk a 15% plus loss that could result if the crypto market as a whole goes down.

I'll keep watching this one and provide additional Ideas as it develops. So follow along if you would like to join in!

Cheers,
RJR

3 ก.พ. 2018

บันทึก

ADA has just broken Ichimoku Senkou SB resistance, and is starting to rise quickly.

I'm too scared to put a proper entry level on ADA, given the overall crypto volatility, but I'd be looking to enter once two green candles close above resistance. Even then, watch for a quick reversal. Things are just too crazy at the moment to be sure of anything.

3 ก.พ. 2018

บันทึก

Start looking to enter at this point. If you're an aggressive trader now would be a good time. If you're conservative then wait to confirm a proper breakout - only once secondary resistance has been breached. See below for some thoughts.

3 ก.พ. 2018

บันทึก

ADA is still going strong, as are most crypto's at the moment. ADA, however, shows strong fundamentals, and the upswing occurred earlier than most others, so that's encouraging. I've switched over to the daily chart to confirm the hourly trend reversal, and we can see that price is bouncing nicely from Span B support. There's strength in this movement, but a few bits of bad news about bitcoin could send it all crashing back. So if you choose to invest, do so wisely.

3 ก.พ. 2018

บันทึก

Apologies for the quick updates! But I just noticed this on the hourly chart... VZO is sitting along the zero line at the moment, and for you short-term traders this should be a buy or sell decision trigger. Basically, if you look at VZO it hasn't moved below the zero line since the recovery began, even when prices have dropped quickly on certain candles, the VZO has remained bullish. However, now it's sitting along that zero line, and it will either a) bounce back up, confirming the bullish trend, or b) dip below for two consecutive candles, indicating a likely pullback. If it dips below for consecutive candles, I would seriously consider exiting the trade, and seeking to enter once the VZO rebounds into bullish territory.

4 ก.พ. 2018

บันทึก

ADA still going strong, and it bounced back from the VZO zero line - which is a great sign of strength in the movement (applies either up or down).

It's up 17.5% since the start of this analysis - not that you should have gotten in at that point! I'm sitting at 10% profit at the moment, and moving to tighter stop losses to negate the high volatility in crypto at the moment. I'll take a safe 10% every day of the week rather than chasing 20%+.

4 ก.พ. 2018

บันทึก

If you're in this trade I'd look at getting out shortly. Big nasty red candle is about to close, and it looks like momentum is stalling, which is pretty natural after a 35% rise. I'd expect to see a pullback soon, and then I'll be looking at getting back in once/if the bullish trend continues.

This will be the last comment on here, as I feel like it's served its purpose :)

Good luck,
RJR