ADA Triple Wave Combo Pattern - Similar To XVG
Let's take a look at ADA. This one is a little tricky in my opinion. I drew up this chart on the 1 Day time frame to get the biggest picture look at what the heck was going on with this coin! Cardano is a good project, it always has been! I just feel that these coins that pumped 50-100x back in December were just labeled pump and dumps and now everyone is scared to buy.
So if we look at ADA, we can see a WXYXZ pattern similar to what is (hopefully) forming on XVG. I see this as a potential bottom mostly because we are reaching the top of wave 1. In Elliot wave, after a 5 wave cycle, wave 4 is usually a solid support. We can definitely see this in the chart - the support line wave 4 provided had 8 bounces off of it! (4 Wick bounces and 4 body bounces)
After wave 4's support broke, it continued the solid downtrend. Now we have to ask, will wave 1 act as the final support? Realistically, how far down can ADA go?
The reason I find this tricky is because there is very little data provided with Cardano. I.E. moving averages are nearly useless on a higher time frame so we can't tell if it has bounced off moving averages or if they will act as a resistance, and RSI is basically straight down, so we don't know when ADA is truly oversold. Finally, the Fib Retracements are fishy. We essentially broke down on the 0.618 region, so the next Fib target should be 0.786, but that is all the way below wave 2!
Another thing to point out is that IF wave 1 is providing a solid support, then we are reaching a critical point. The first thing I did before drawing my supports and Fib regions was to see if I could draw a downward trend line. After looking at the chart, I see that there is a GIANT descending triangle. Of course, that would suggest we would break down further. However, if we do break out of it, I am sure the run-up will be monumental.
All in all, ADA is quite a puzzle. I have not placed any buy orders yet (which hopefully I won't regret), but I think we should all keep an eye out for what happens in the next day or two - uptrends happen in the blink of an eye.
So if we look at ADA, we can see a WXYXZ pattern similar to what is (hopefully) forming on XVG. I see this as a potential bottom mostly because we are reaching the top of wave 1. In Elliot wave, after a 5 wave cycle, wave 4 is usually a solid support. We can definitely see this in the chart - the support line wave 4 provided had 8 bounces off of it! (4 Wick bounces and 4 body bounces)
After wave 4's support broke, it continued the solid downtrend. Now we have to ask, will wave 1 act as the final support? Realistically, how far down can ADA go?
The reason I find this tricky is because there is very little data provided with Cardano. I.E. moving averages are nearly useless on a higher time frame so we can't tell if it has bounced off moving averages or if they will act as a resistance, and RSI is basically straight down, so we don't know when ADA is truly oversold. Finally, the Fib Retracements are fishy. We essentially broke down on the 0.618 region, so the next Fib target should be 0.786, but that is all the way below wave 2!
Another thing to point out is that IF wave 1 is providing a solid support, then we are reaching a critical point. The first thing I did before drawing my supports and Fib regions was to see if I could draw a downward trend line. After looking at the chart, I see that there is a GIANT descending triangle. Of course, that would suggest we would break down further. However, if we do break out of it, I am sure the run-up will be monumental.
All in all, ADA is quite a puzzle. I have not placed any buy orders yet (which hopefully I won't regret), but I think we should all keep an eye out for what happens in the next day or two - uptrends happen in the blink of an eye.
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