The year 2018 was a gloomy one for the cryptocurrency market, making it the longest bear market experienced so far. Cardano (ADA) coin was not left out of this price decline.
If you are interested please read through our Technical Analysis of Cardano (ADAUSD) of November 2018 also.
A question comes to mind, where did all that money go?
Well, if you’re new to the world of financial markets, you’ll soon come to realize that it is a zero-sum game, which means your profit is someone else’s loss. For there to be a buyer there has to be a seller. Now if the selling pressure overwhelms the buying pressure, then we see the price crashing down. Come along as we take a look at major patterns that show the presence of buyers and sellers on the ADAUSD chart.
Technical Analysis of ADAUSD
ADAUSD: Monthly Chart
As seen on the monthly chart of the ADAUSD, price triggered a shooting star pattern after the closing price of January ’18, which led to a 93.3% price decline. Within that long bearish trend, a bearish accumulation pattern was also triggered on October ’18, indicating a single bearish candle of about 54.5%, with resistance at 0.091197.
As we come to the last days of March, we anticipate a breakout of hidden bearish accumulation after the monthly closing price above 0.0561.
ADAUSD: Weekly Chart
Moving a step lower on the time scale to the weekly chart, we notice a bearish accumulation pattern on the 01st of October ’18, with an established resistance at 0.086114. The ADA coin lost its grip for a bullish recovery as it plummets by 66.0%.
An attempt towards restoring the strength of the ADA coin came when a sudden upward surge in price broke through the bearish accumulation resistance of 0.032794. The breakout pattern offered an opportunity to enter a long trade after the closing price on the 17th of December ’18 candle. Fast forward to the 25th of
From the bullish accumulation pattern on the 25th of February ’19, the pair moved into consecutive bullish closing candles and a 73.7% price increase.
ADAUSD: Daily Chart
Following a huge bearish price decline signalled by a double bearish accumulation on the 15th and 17th of November ’18, the pair entered into a cyclic motion that later triggered a bullish regular divergence on the 16th of December ’18.
The bullish divergence pattern was confirmed by a breakout of bearish accumulation on the 16th of December ’18, and an early confirmation to the breakout of bearish accumulation on the weekly chart. The Cardano (ADA) coin has from that point on soared by 150.62%.
ADAUSD: 4-HOUR Chart
The 4hour chart maintains an upward swing with bullish hidden divergence patterns reinforcing long entry points after an initial breakout of bearish accumulation on the 14th of March ’19. The bullish divergence patterns were triggered on the 18th and 26th of March ’19.
An attempt to send price into a downward spiral was made by triggering a regular bearish divergence on the 24th of March. However, that move was halted following a bullish fakey pattern triggered on the 28th of March ’19 12:00, sending price back up by an extra 10.4%.
Conclusion and Projection
From the top down analysis of the ADAUSD, we may conclude that the crypto winter is slowly coming to an end. We should be looking forward to a crypto-spring, as the price is projected to reach the 0.91197 resistance going forward into the new month.
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