ADA is one of the most bullish coins right now. The chart looks primed for a boost upwards. Starting from the weekly time frame, the price has been bearish as the change of structure has been already observed and a potential head and shoulder pattern is being formed. Right now the right shoulder is what we can anticipate and by that, the bias is almost bullish to some extent. This pullback can reach almost a price of $1.923.
Now why this level? If the chart is observed on the weekly Time frame, there is an unmitigated order block which on Lower time frame also consists of a hidden Supply Zone that can drive the price of ADA to it and from there a potential reaction can be anticipated. Moving down to the daily Time Frame the price has many other confluences which can drive the price upwards.
Confluences – Cardano (ADA)
First, there was an impulsive move to the downside and as about the market cycles, after very impulsive moves, a correction is observed. Right now, the price of ADA is kind of lost its momentum and is doing Descending correction which is a sign of reversal. This potentially shows that the price can bounce upwards. Adding into that, as BTC has a very high influence on every other coin, and as BTC showing signs of bullishness as well, it’s very likely that this ADA alt can bounce upwards. Now as this situation is very clear, then it’s very likely that many people would be looking for buys, so it’s very likely that price might do some sort of manipulation. So right now the channel in which price is forming right now, the price might spike downside, and then after taking out most of the stop losses sitting behind this pattern.
Possible Reaction Points
After taking out that liquidity, the price of ADA may get the necessary fuel, which can potentially result in an impulsive move to the upside. Now the liquidity move can end around $0.908 from where if price shows some bullish evidence, which are structure shifts on lower Time Frame, then possible longs can be taken till the level mentioned above. Now once the price starts heading upside, there are several levels from where price might show some reversal so it’s important to have mid Take Profits. The good ones can be considered around $1.258 as there’s a Bearish Breaker Block while one more can be considered around $1.456 where a bearish Order Block is sitting from where the price might react.
