ADA Update after recent selloff (1D)
2024-12-20
Category: None

BINANCE:ADAUSDT  in the daily chart saw, as almost everything (stocks, cryptos etc.) a selloff after the FOMC meeting. I personally find it hilarious that, after all these bullish news, there only needs to be ONE bad or slightly negative news and boom, everyone panics. but here we go again: 

ADA didn't find support (as of now) on the Trendline since 2018. The most important part is now it HAS to find support above it again otherwise it can turn into resistance yet again and we just managed to push through it at the end of november. 

it kind of found support on the major resistance/support flip line (red) even tho it pushed through, if it holds/closes above it is just a liquidity grab but not a real weakness. 

same goes with the trendline of 2018. if we manage to get up to around 87cents before the day closes, we can assume the trendline to be still in tact (kind of) altho weakened.. so another clear bounce from that area would be nice to see before attempting higher. 

the CCI shows we are way oversold now (but it's not a reliable indicator in of itself). 

so since it couldn't attempt a push through the 161.8 fib extension (as I thought) before everything crashed, I think for now we can see a little consolidation before the uncertainty subsides. somehow I could imagine that the market will consolidate until 20th of january, just because the "uncertainty" of the trump effect will then be a fact or fiction. but we will see. 

in the greater picture of the crypto market, we saw a 31.78% correction with ADA before rebounding. the next days will tell if it goes down further to the POC (which is at 59 cents) or find support at either 80 or 87 cents (80 is red line, 87 is trendline). 

PS: if you'd draw fib levels from the recent high to the currently established low, our 50% fib level is at around 1.04 $ and the golden pocket coincides with the 161.8 fib extension level. 

