ADA is setup for a breakout with it forming a potential inverted head and shoulders bottom right below the 200 day ema.
Not only that but the price action leading up to the current test of the 200 day ema has been very clean, staying above other lower time frame emas, consolidating on top of them, and even forming some nice golden crosses like the 50 and 100 day emas in the process.
The only real things to keep in mind here are:
- All patterns can fail.
- If BTC dumps, ADA probably isn’t going to fly like an eagle.
- LTC almost doubled after breaking out of its 200 day ema with a simmilar setup.
- ADA could easily chop around and consolidate giving traders a headache.
- A breakout from a inverted head and shoulders would typically be said to produce a breakout the size of at least the distance from the neckline to the head from the point of breakout.
- This isn’t investing advice, this is me pointing out a chart pattern, so please don’t trade or invest based on this 😀
That is all.