Slight ADA Consolidation Could Bring New Highs

2021년 10월 5일

Currently we're in a bullish triangle pattern on 12H chart. This most recent run has been more or less a fractal of the previous run earlier this year; with the triangle pattern matching perfectly that of June 12 - June 18.
The movement of #BTCUSD could strongly influence how this plays out; or Cardano's recent partnerships in Africa and around the world could have it moving on it's own accord.

Regardless, the price and mCap increase has to come from somewhere. The development and TLV being moved into EVM-type chains and other L1/L2 solutions, breaking apart #ETH market cap. Cardano will benefit from this, not as much as the EVM-based L1/L2 networks such as #AVAX, #FTM, and #MATIC, but the shift in mCap from Ethereum will benefit all smart-chains.

• Overbought conditions on low time-frame.
  
• Underbought or <50 RSI on higher time-frames.
  
• Strong support below ~$1.50
  
• Bullish triangle in a volume profile trough with little overhead resistance.
  

Expectation
I would expect a pullback before the next bull run into the `Buy Zone 1` area, followed by continued bullish sentiment and demand bringing ADA to new highs.
Considering the money available in crypto, $5 may be a stretch before Q2 2022, but a rapid dispersal of ETH mCap could speed ADA's rise.

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Always DOYR
Don't forget to manage risk with stop-losses and take-profits.
This is not financial advice, just observations of the market.