ADA/USD 12hr - Forming a large descending triangle.
Ive seen a few videos claiming the #ADA has bottomed because of its long consolidation but let's play devils advocate here.
Whats not in ADA's favor:
đ» Its possible no coin has found a bottom (Perhaps ATOM, sheesh).
đ» The series of lower highs says Bears are in total control
đ» There is a big difference between side ways/horizontal consolidation and a descending triangle formed after a large move down.
đ» Price action below the 50MA and 200MA on the Daily
Whats in ADA's favor:
đ Vasil upgrade soon
đ Couple of higher lows recently
Rules for Descending Triangle:
1. The market must be in a downtrend before the descending triangle pattern appears.
2. The descending triangle is formed while the market enters the consolidation phase. (notice all of the sideway actions)
3. Needs a downward sloping trend line that can be drawn by connecting the highs. You can visualize this as lower highs and sellers starting to overwhelm the buyers (bulls)
4. The lower trend line needs to act as support. Price often will bounces off this level until the breakout eventually occurs.
5. The break out happens after price posts a strong break below the lower trend line. Always look for confirmation for continued downward momentum.
Do you think ADA has bottomed or will we see the triangle play out to the low 0.20's?
Ive seen a few videos claiming the #ADA has bottomed because of its long consolidation but let's play devils advocate here.
Whats not in ADA's favor:
đ» Its possible no coin has found a bottom (Perhaps ATOM, sheesh).
đ» The series of lower highs says Bears are in total control
đ» There is a big difference between side ways/horizontal consolidation and a descending triangle formed after a large move down.
đ» Price action below the 50MA and 200MA on the Daily
Whats in ADA's favor:
đ Vasil upgrade soon
đ Couple of higher lows recently
Rules for Descending Triangle:
1. The market must be in a downtrend before the descending triangle pattern appears.
2. The descending triangle is formed while the market enters the consolidation phase. (notice all of the sideway actions)
3. Needs a downward sloping trend line that can be drawn by connecting the highs. You can visualize this as lower highs and sellers starting to overwhelm the buyers (bulls)
4. The lower trend line needs to act as support. Price often will bounces off this level until the breakout eventually occurs.
5. The break out happens after price posts a strong break below the lower trend line. Always look for confirmation for continued downward momentum.
Do you think ADA has bottomed or will we see the triangle play out to the low 0.20's?