Expect a Pullback and Another Rally Soon

0
193


Figure 1. ETH daily chart with EWP count and technical indicators.

After three comes four and five, that we know for certain

Thanks to the EWP, we know with certainty that after wave 3 comes a 4th and 5th wave. Just like (green), minor wave-4 and five came after minor-3 last week. See Figure 1B above. Currently, ADA is IMHO completing (Red) intermediate wave-iii of (black) major wave-5. This minor wave-5 divides (grey, minute, waves i, ii, iii, iv and v) and extends. Hence, it has already surpassed my ideal target zone ($2.50+/-0.25), but it is still within the accuracy 10% range. Clearly, and as usual, “in Bull markets, upside surprises and downside disappoints.”

At this stage, albeit not yet confirmed, the technical indicators, like the RSI5 and MFI14, are less potent now than they were at last week’s top. This setup is typical for a wave-5 of wave-iii, as the maximum strength readings are often at the 3rd of a 3rd wave high. I, therefore, expect ADA to top out soon and embark on a wave-iv correction, lasting several days, to ideally $2.25-2.55 before wave-v of wave-5 takes hold and rallies price to ideally $3.25-3.75. From there, we should then expect an even more significant correction. But, for now, let us focus on the pending (red) wave-iv and -v.

Bottom line: Cardano is now the 3rd largest cryptocurrency by market cap and has rightfully earned its separate coverage. ADA should be completing a more significant 3rd wave soon and embark on a correction to ideally around $2.25-2.55, depending on where the 3rd wave will top. After, it will most likely rally to new all-time highs again, thinking mid- to high-$3s. Hence, the pending correction should IMHO be another buying opportunity for swing traders as long as ADA does not break below $1.87.

For a look at all of today’s economic events, check out our economic calendar.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here