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ADA VS BTC: Where will ADA go - Relative Strength Show DownWho bought ADA because it would "KILL ETH!" Who is still holding that ADA because "there's still a chance!" If so read on my dear friend. In this post, we will explore some of the signs that show us the strengths and weaknesses of Cardano (ADA) over time compared to Bitcoin. In this way, we can continue our mini-series of exploring the relative strength of a secondary asset VS a primary asset, and from this do two very important things: A) Understand probable outcomes based on the primary asset B) Temper expectations and understand probable profit taking areas on the secondary asset. TL:DR - Bitcoin has a much stronger structure relative to ADA and so ADA is much less likely to break all-time highs than bitcoin is. Right, time to launch in. In a previous post, I compared the strength of Bitcoin vs the weakness of Cardano. In crypto as with any other 'correlated market', groups of assets tend to follow one primary driver or asset. For the precious metal market, if Gold goes up this usually means Silver goes up. Just like when America sneezed & the rest of the world's markets caught a cold during the 2008 US housing market crash, when Big Bad Boy Bitcoin moves the rest of the crypto market usually moves with it. So what information can we gain from the fact that primary and secondary assets are locked in a delicate dance? Relative Strength. Relative strength is defined pretty straightforwardly in trading - the amount of capital flowing in/out of an asset compared to the amount of capital flowing in/out of another asset. If the primary asset increases 10% over the course of a month and the secondary asset increases 20%, that means that capital is favouring the secondary asset. For whatever reason, investors are happier to put their money into the secondary asset than the primary and so we can simply say: The secondary asset is acting stronger than the primary. Because trends in markets tend to continue longer than they don't, this means that going forward we can then say: probability will favour the secondary asset continuing to outperform the primary. The same is true in reverse: If a primary asset increases 10%, and a secondary asset only increases 5% then the relative strength of the secondary asset is weaker than the primary. Probability then favours the primary asset being stronger in the future and so you should trade according to this context. Applying this very simple understanding of correlated assets to Bitcoin and Cardano we now need to scroll back in time. What we see is a story emerging of two intertwined partners whose strengths, compared to each other, ebbs & flow. Through this, we can answer our two very important points introduced above: (A) Undersatnd probable outcomes based on the primary asset, (B)Temper expectations and understand probable profit taking areas on the secondary asset. Lets take a look at the chart for this post. Each number bellow correlates to the number on the chart. Bitcoin is represented through the Orange line while Cardano is the candlesticks: 1: Here we see Bitcoin trends bullish, reaching a high well before Cardano. As money flowed into Crypto it favoured the most well known of all coins but as profits began to be realised and capital flooded through the crypto space, it spread out from our primary asset to secondary assets. Cardano quickly caught up and while Bitcoin fiddled around with 57k for 3 months ADA paused with it, eventually exploding to $2. Nothing very special about this story, many alts experienced this same "alt season". 2: Now this is where things get interesting. While Bitcoin plummeted from point 1 (57k to 30k) it dragged the entire crypto space with it, yet unlike many weaker alts, as Bitcoin softly rallied from 32k to 51k between July and August 2021 Cardano again exploded. By breaking its all-time high before Bitcoin this showed us that capital was favouring Cardano and so its relative strength to Bitcoin was much stronger. We don't need to know why capital favoured Cardano - maybe the technology was maturing really well, or there was a lot of new developments - all we need to see is that it did. At this stage professional traders and retail alike had the technical evidence to buy ADA as probability heavily favoured such a strong asset continuing higher ESPECIALLY if the primary asset continued to show signs of strength. 3: And that is exactly what happened - Bitcoin went on to break its highs yet... wait.. what did Cardano do? It did nothing. This was the first sign of major weakness in the coin. For whatever reason, not only had it pulled back heavily when Bitcoin sold off in September but it failed to reactivate any bullish trend EVEN WHEN the primary asset was breaking all time high and the news/money flowing into crypto would have been at a peak. In this situation danger rose as, if money began flowing out of Bitcoin - the strongest, most well known of all crypto - then Cardano would suffer even more. 4: And that is what happened. Cardano failed to bounce as Bitcoin broke all-time highs and when the enthusiasm of this fell away Cardano fell even harder. Step 3 was an early warning sign that risk was rising with Cardano as its relative strength to the primary asset had been significantly undermined. Fast forward a few months later and we see this trend continuing today. With Bitcoin creating a higher high above 36k compared to the 30k of 2021, buyers have shown they are extremely eager to buy a more expensive Bitcoin than what it was worth back in 2021. Even after all the fear, uncertainty and doubt, the value of Bitcoin is considered by the market to be higher now than last year. Should the same conditions that led to Bitcoin breaking its all-time high in Nov 2021 emerge as the FUD subsides, then probability heavily favours Bitcoin breaking all time highs again. But what about Cardano? Here buyers failed to step in, instead of waiting for LOWER prices than a year ago and breaking the major support of $1. While this certainly doesn't mean Cardano will keep dropping it does mean that we should note that ADA has shown extreme weakness, gauging the relative strength of the asset and saying "Well if Bitcoin heads on up from here, because the relative strength of Cardano is weaker than Bitcoin, it is much less likely to go as far (and break an all time high). And with that we can answer (A) and "Understand probable outcomes based on the primary asset": - The probable outcome is that Bitcoin if Bitcoin increases in value, it will likely increase more in value compared to ADA as the story of Bitcoin is one of strength and the story of ADA is one of initial strength but then weakness. So now what about (B) - How does the above conclusion "temper expectations and help us understand probable profit taking areas on the secondary asset?" As the relative strength of Cardano has shown itself to be weaker than Bitcoin, can you really expect Cardano to go to $4-5-10 (which would be a 200%+ increase in value at the very least) if Bitcoin doesn't increase the same, if not more, during the same time? Will we really see Bitcoin go to 200k? No. I mean, like, maybe but is it more probable than not? No its very improbable. In trading, you can ONLY care about being consistently profitable - this means that, like a poker player, you MUST try to have probability on your side in all instances. That is the golden rule of trading, so why gamble on Bitcoin doing a x2/3/5 in value and becoming worth more than the entire Gold market and then take an additional gamble and hope the developers for Cardano surprise everyone and overtake ETH to be the dominant layer 2 solutions. Objectively both of those assumptions are extremely improbable. And with that we now have our answer to (B) - Yes ADA can triple in value but it is extremely improbable and so major profit-taking should be done at crucial levels before that. In this case, look to the 61/78% fibs as these traditionally act as major resistances in assets that are trending bullish but pausing to take a breather. The technology of ADA is great, the potential is there but the timing is still a few years away. It took ETH over a decade to become what it is and so expecting the same from Cardano in a few years is just outright gambling and unrealistic. With that in mind, seeing as we are well into the Crypto major bull cycle (having started back in 2020) we are unlikely to have enough time for Cardano to mature in technology to increase its value to higher than that of the speculation seen in May 2021. As such, profit taking should be taken between the 61-78% fibs ($2.25 - $2.6). If price breaks below $1 again while Bitcoin is accelerating towards all time highs then reducing risk or closing the position might be viable considering probability of seeing $0.16 - $0.4 significantly rises. Will there be short term bounces in this scenario? Ofcourse, but your money would be better served elsewhere. Be patient, stoic and objective in your trades. P NOTE: I would not be here without the incredible lessons I have learned from my past teachers. I can not offer the same level of market coverage or substantial knowledge as these guys. I learnt what I know from MarcPMarkets/Goldbug1 at 'Greenbridge Investing' & Phil through 'Pro_Indicators' so go check them out. PLEASE DO NOT USE THIS POST AS A CALL FOR ACTION. IF YOU ARE INEXPERIENCED, READ THIS AND DECIDE TO OPEN A TRADE THAT IS EXACTLY THE BEHAVIOUR I AM ENCOURAGING YOU NOT TO DO. Go away, learn technical analysis and probability trading, learn a strategy and practise that. Invest in yourself as you aren't investing otherwise.
BINANCE:ADAUSD
by MarcusAurelius161
Keep an eye on ADA - we could see a breakout soon!Here's a quick look at the ADA Daily chart . As we can see, the price has broken out from its bigger downtrend and a bigger reversal could be upon us. If you didnt catch the immidiate breakout from the falling wedge , then the best entry would be when the price breaks above 1.252$ with good amount of volume . Definitely one to keep an eye on! ------------------------------------------- The idea is: Buy when the price breaks above 1.252$ and take profits at the levels shown in the chart. Targets: 1. 1.47$ 2. 1.7$ 3. 2$ ------------------------------------------- What Is a Wedge in the context of trading?: "A wedge is a price pattern marked by converging trend lines on a price chart. The two trend lines are drawn to connect the respective highs and lows of a price series over the course of 10 to 50 periods. The lines show that the highs and the lows are either rising or falling and differing rates, giving the appearance of a wedge as the lines approach a convergence. Wedge-shaped trend lines are considered useful indicators of a potential reversal in price action by technical analysts. Key Takeaways for Falling wedges: 1. Wedge patterns are usually characterized by converging trend lines over 10 to 50 trading periods. 2. The patterns may be considered rising or falling wedges depending on their direction. 3. These patterns have an unusually good track record for forecasting price reversals." ------------------------------------------- If you like the content, then make sure to comment and like the post :D Follow me for daily profitable trading setups BTC dictates the market. If BTC falls, then Alts will fall as well. Trade safe!
Long
by MBM_Crypto
Cardano (ADA) - March 28Hello? Traders, welcome. By "following", you can always get new information quickly. Please also click "Like". Have a good day. ------------------------------------- ** The BTC market chart for altcoins will not be published for the time being as the BTC price appears to be turning upward. (ADAUSDT 1W Chart) Section 1 (1.052-1.170) is the inverted section of the indicator and is expected to rock up and down, so trade cautiously. Section 2 (1.344-1.509) is the trend-setting section and is expected to find resistance. If it falls below 1.104, we expect to touch section 5 (0.518-0.683), so a short stop loss is necessary. (1D chart) If the price holds above 1.170, it is expected to turn into an uptrend. However, it is expected that the upward trend will continue only when it rises above the 1.344-1.509 section. (buy) - After confirming that it is supported at 1.170 or higher - When reconfirming support in section 4 (1.014-1.052) (Stop Loss) - When it falls below 1.014 - When it falls below 0.888 (Sell) - When receiving resistance in the range 1.344-1.509 - The area around 2.004 is a psychological resistance section when receiving resistance. The keypoint point is 1.170. ------------------------------------------------------------ ----------------------------------------------------- ** All indicators are lagging indicators. Therefore, it is important to be aware that the indicator will move accordingly as price and volume move. However, for the sake of convenience, we are talking in reverse for the interpretation of the indicator. ** The MRHAB-O and MRHAB-B indicators used in the chart are indicators of our channel that have not been released yet. (Since it was not disclosed, you can use this chart without any restrictions by sharing this chart and copying and pasting the indicators.) ** The wRSI_SR indicator is an indicator created by adding settings and options to the existing Stochastic RSI indicator. Therefore, the interpretation is the same as the traditional Stochastic RSI indicator. (K, D line -> R, S line) ** The OBV indicator was re-created by applying a formula to the DepthHouse Trading indicator, an indicator disclosed by oh92. (Thanks for this.) ** Support or resistance is based on the closing price of the 1D chart. ** All descriptions are for reference only and do not guarantee a profit or loss in investment. (Short-term Stop Loss can be said to be a point where profit and loss can be preserved or additional entry can be made through split trading. It is a short-term investment perspective.) ---------------------------------
by readCrypto
1
Cardano ADAUSDT short termsInvestment information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy service is provided within the framework of investment consultancy agreement to be signed between brokerage houses, portfolio management companies, non-deposit banks and the customer. The comments and recommendations contained herein are based on the personal opinions of those who comment and advise. These views may not be suitable for your financial situation and risk and return preferences. Therefore, making an investment decision based solely on the information contained herein may not yield results that meet your expectations.
Short
by MathGraphX
2
ADA broke out from its bigger downtrend!Here's a quick look at the ADA Daily chart . As we can see, the price has broken out from its bigger downtrend and a bigger reversal could be upon us. If you didnt catch the immidiate breakout from the falling wedge, then the best entry would be when the price breaks above 1.25$ with good amount of volume. Definitely one to keep an eye on! ------------------------------------------- The idea is: Buy when the price breaks above 1.25$ and take profits at the levels shown in the chart. Targets: 1. 1.47$ 2. 1.7$ 3. 2$ ------------------------------------------- What Is a Wedge in the context of trading?: "A wedge is a price pattern marked by converging trend lines on a price chart. The two trend lines are drawn to connect the respective highs and lows of a price series over the course of 10 to 50 periods. The lines show that the highs and the lows are either rising or falling and differing rates, giving the appearance of a wedge as the lines approach a convergence. Wedge-shaped trend lines are considered useful indicators of a potential reversal in price action by technical analysts. Key Takeaways for Falling wedges: 1. Wedge patterns are usually characterized by converging trend lines over 10 to 50 trading periods. 2. The patterns may be considered rising or falling wedges depending on their direction. 3. These patterns have an unusually good track record for forecasting price reversals." ------------------------------------------- If you like the content, then make sure to comment and like the post :D Follow me for daily profitable trading setups BTC dictates the market. If BTC falls, then Alts will fall as well. Trade safe!
Long
by MBM_Crypto
2
$ADA/BTC 1W (Binance Spot) Huge symmetrical triangle breakoutCardano has pulled back towards 100EMA and is preparing for the big bull-run to come, time to full swing! Current Price= 0.00002886 Buy Entry= 0.00002893 - 0.00002513 Take Profit= 0.00004463 | 0.00006935 | 0.00012294 Stop Loss= 0.00001998 Risk/Reward= 1:2.5 | 1:6 | 1:13.6 Expected Profit= +65.11% | +156.57% | +354.83% Possible Loss= -26.08% Fib. Retracement= 0.618 | 1.117 | 1.764 Margin Leverage= 1x Estimated Gain-time= 1.25 years cardano.org
Long
by TradingOn
1
Cardano vs Bitcoin Daily Timeframe AnalysisI am seeing it but it comes with a strange feeling... Sometimes when you have the chart with the technicals and clear signals, the feeling is the contrary and many times this "contrary" feeling is what tells us that everything is just as it looks. The chart for Cardano vs Bitcoin (ADABTC) is now bullish, by all standards. We have bullish indicators, RSI and MACD. A bullish breakout and the entire Altcoins market starting to wake up. You can see my daily short-term targets on the chart above. Thank you for reading... Thank you for your continued support. Namaste.
by AlanSantana
4
Cardano (ADA) - March 16Hello? Traders, welcome. By "following", you can always get new information quickly. Please also click "Like". Have a good day. ------------------------------------- (ADAUSDT 1D Chart) Resistance range: 1.344-1.509 Support section: 0.518-0.683 We need to see if we can move above the 1.013 point by moving up along the uptrend line (2). It must rise above the 1.170 point to turn into an uptrend. If it declines from 0.518-0.683, it is highly likely to enter the mid- to long-term investment zone, so you need to trade cautiously. The next volatility period is around March 29th. --------------------------------------- (ADAUSD 1W Chart) Above 0.793-0.918: Expected to create a new wave. 0.345-0.476 or less: mid- to long-term investment area -------------------------------------- (ADABTC 1W chart) 0.0000 1593 - 0.0000 1944 or higher: Expected to continue upward trend The price needs to rise above the 0.0000 2512 point in order to turn into an uptrend. If it falls below 0.0000 1593, there is a possibility of entering the mid- to long-term investment area, so careful trading is required. ------------------------------------------ We recommend that you trade with your average unit price. This is because, if the price is below your average unit price, whether the price trend is in an upward trend or a downward trend, there is a high possibility that you will not be able to get a big profit due to the psychological burden. The center of all trading starts with the average unit price at which you start trading. If you ignore this, you may be trading in the wrong direction. Therefore, it is important to find a way to lower the average unit price and adjust the proportion of the investment, ultimately allowing the funds corresponding to the profits to be able to regenerate themselves. ------------------------------------------------------------ ----------------------------------------------------- ** All indicators are lagging indicators. Therefore, it is important to be aware that the indicator will move accordingly as price and volume move. However, for convenience, we are talking in reverse for the interpretation of the indicator. ** The MRHAB-O and MRHAB-B indicators used in the chart are indicators of our channel that have not been released yet. (Since it was not disclosed, you can use this chart without any restrictions by sharing this chart and copying and pasting the indicators.) ** The wRSI_SR indicator is an indicator created by adding settings and options to the existing Stochastic RSI indicator. Therefore, the interpretation is the same as the traditional Stochastic RSI indicator. (K, D line -> R, S line) ** The OBV indicator was re-created by applying a formula to the DepthHouse Trading indicator, an indicator disclosed by oh92. (Thanks for this.) ** Support or resistance is based on the closing price of the 1D chart. ** All descriptions are for reference only and do not guarantee a profit or loss in investment. (Short-term Stop Loss can be said to be a point where profit and loss can be preserved or additional entry can be made through split trading. It is a short-term investment perspective.) ---------------------------------
by readCrypto
Cardano (ADA) - February 26Hello? Traders, welcome. If you "follow", you can always get new information quickly. Please also click "Like". Have a good day. ------------------------------------- (ADAUSD 1W Chart) (All: ) 1st resistance section: around 1.043 point 2nd resistance section: 1.363-1.524 Support section: 0.561-0.722 -------------------------------------- (ADABTC 1W chart) If the price holds above the 0.0000 1944 point, it is expected to create a new wave. However, the upward trend is expected to accelerate when it rises above the volume profile section formed near the 0.0000 2982 point. 0.0000 2147 - 0.0000 2542 You should see if there is any movement out of the range. ------------------------------------------ We recommend that you trade with your average unit price. This is because, if the price is below your average unit price, whether the price trend is in an upward trend or a downward trend, there is a high possibility that you will not be able to get a big profit due to the psychological burden. The center of all trading starts with the average unit price at which you start trading. If you ignore this, you may be trading in the wrong direction. Therefore, it is important to find a way to lower the average unit price and adjust the proportion of the investment, ultimately allowing the funds corresponding to the profits to be able to regenerate themselves. ------------------------------------------------------------ ----------------------------------------------------- ** All indicators are lagging indicators. Therefore, it is important to be aware that the indicator will move accordingly as price and volume move. However, for convenience, we are talking in reverse for the interpretation of the indicator. ** The MRHAB-O and MRHAB-B indicators used in the chart are indicators of our channel that have not been released yet. (Since it was not disclosed, you can use this chart without any restrictions by sharing this chart and copying and pasting the indicators.) ** The wRSI_SR indicator is an indicator created by adding settings and options to the existing Stochastic RSI indicator. Therefore, the interpretation is the same as the traditional Stochastic RSI indicator. (K, D line -> R, S line) ** The OBV indicator was re-created by applying a formula to the DepthHouse Trading indicator, an indicator disclosed by oh92. (Thanks for this.) ** Support or resistance is based on the closing price of the 1D chart. ** All descriptions are for reference only and do not guarantee a profit or loss in investment. (Short-term Stop Loss can be said to be a point where profit and loss can be preserved or additional entry can be made through split trading. It is a short-term investment perspective.) ---------------------------------
BINANCE:ADAUSD
by readCrypto
1