ADA is positioned for a bullish reversal, 100% no problem
ADA is one of the darkest and most disappointing of all the major cryptocurrencies. But the fortunes of ADA will soon change the current situation.
This altcoin has been falling continuously over the past 3 months. Since the week of September 3rd, the price has gradually moved south. Out of 13 candles last week, only 1 candle closed higher than the opening price.
4-Hour ADA Price Chart | Source: Tradingview
In addition, the single bullish candle that was 20% higher caused ADA to drop again, producing a meager 3% gain this week. Compared to ATH, the price is now 50% lower. However, it is preparing for a big comeback.
According to Gann’s analysis, the 90-day cycle is the most important cycle of the year. Gann wrote that any instrument that is exposed to sustained sell (or buy) pressure over a 90 day period has a very high probability of finding lows and reversing. Accordingly, ADA is well suited for such a bullish reversal.
The 90 day cycle time comes at a price that couldn’t be better. The most recent low was at $ 1.41, which is just above the 2021 volume control point at $ 1.38. Additionally, Cloud’s Top (Senkou Span A) at $ 1.36 also adds to this support structure.
Weekly Ichimoku ADA / USD Chart
A closing price of the Tenkan-Sen at $ 1.63 could trigger a spike. The price may encounter initial resistance at Kijun-Sen at $ 1.90 and some selling pressure at Senkou Span B ($ 2.17). ADA will eventually have to close cloud and high-volume nodes for $ 2.15 to find new ATH.
In the event of a price drop, the risk is limited to the USD 1.20 zone.
Maintain an important level
Strategist Jason Pizzino highlights the critical levels that ADA must maintain in order to maintain a bullish market structure.
In a new strategy meeting, Pizzino speak that ADA is still in a macro uptrend, albeit much lower than ATH.
“The general trend right now is still a big bull market. I probably wouldn’t call it a bull if it broke the $ 0.9-1 lows, but right now the week has closed above the 50% fibi so it’s still pretty strong. ADA is trading at $ 1.6 and 50% Fib is trading at $ 1.59, so a small token is required there. “
Source: Jason Pizzino
Pizzino added that ADA’s sharp decline this month signals the end of a multi-month correction period.
“You can see how quickly it starts to fall towards the end of the trend. And from that point “probably” ends. I can’t say for sure, but often at the end of a downtrend the price makes a very quick move and then reverses …
I haven’t seen a turnaround yet, but the first sign to me is that the market has continued to decline. “
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According to AZCoin News