Hi,

Recently we saw a tiny pump in the crypto assets but probably it is too soon to think that it will find the momentum from that. Despite the fact, we still should prepare, and let’s start with ADA.

To be a confirmed move to where I love to take the risk and play with my money would be the following scenario…

We have to be patient and need to follow the scenario quite strongly because we are still on a downtrend with lower lows and lower highs. However, we have seen a tiny HH in January but the trendline touch pushed it back to the mid-term direction. So, basically, it doesn’t mean anything, we need more, we need stronger confirmations, and strong breakouts from the current downtrend.

What I would love to see?
1) We need to get back above the round number of $1.000. Atm it works as a strong resistance level . In general, the $1.000 has played an important role and we need to get back above it. You don’t want to invest right now and start to guess, does it break above the strong level or not. We don’t guess we act after we have seen some strength!

2) The trendline – the price needs to break above if too. Since August 2021 the price of Cardano has printed lower highs and lower lows and the trendline has held the price almost perfectly. We need to get rid of it and the price needs to break above the trendline, then it starts to act as a support level during the retest and it would be perfect. And even more perfect if the trendline gets smashed with a strong and powerful Daily candle!

3) Last but not least – the price of ADA needs to print another higher high. There is also a minor horizontal area that has worked quite nicely.

Summary: Wait for a break above the round number, wait for a break above the trendline, wait for a new HH formation and act after it makes a retest of the breakout areas – price vise the position building should stay between $0.970 to $1.150!

Regards,
Vaido