ADA is prime

ADA had a pretty drawdown following the BTC flash crush. This has created new great opportunities. I entered this baby on the daily 50 MA support at 2.34. However, I didn't share this trade as it was a high risk. Now ADA is hovering at 2.62 after a strong reaction yesterday which brought it to 2.81 at the peak.
ADA is bullish right now. Why?
- strong bullish engulfing
- Reaction of the previous resistance (reclaimed) turned support (old ATH)
- High volume on the engulfing
- great fundamental
Now the first resistance to break is the diagonal trendline. A good entry will be on the breakout of the resistance or the retest. Entering now is too risky as there is not a clear direction yet.
My stop loss is set at 2.40 below the strong support.
I see ADA break out on the next day or 2 and walk its way up to 3.1. The final target is 4.13 for this trade, with partial profit-taking on the way up.
However, I believe ADA will reach $19 in this bull cycle if BTC reaches my target of 185k.
So enjoy the ride

Kommentar:

I have now exited the trade I opened at 2.34. If the hourly candle closes below 2.60, it will invalidate my hypothesis. I will wait for a better entry.

Kommentar:

Just to clarify my previous comment. I close my short term trade...unless the price break below the bullish engulfing I am holding my medium-term holdings as the bullish scenario still holding.

Kommentar:

i have decided to update you one more time. Good bounce here. Bullish engulfing on the 30 min with a bullish stoch rsi cross. Bounce on previous resistance. Bullish sign for the next few hours. Let s see how it plays out.