Early May Update: Technicals
ADA has dropped through the ascending trendline that acted as the support and is now heading towards the horizontal support line at 1087 satoshis, a strong zone formed back in January 2019, defended and used as the rebound area on multiple ocassions in January and March. ADA has essentially given back all the gains it made in the mini bull run that started in March and peaked in the first week of April.
Since bitcoin is still highly erratic and fickle at its recently reached highs, market is mostly looking at its next move while ADA and other altcoins are still in the wait mode. This support zone is a good loading up area but should bitcoin burst through $6k zone, ADA could lose more value as the money flows out of altcoin and into bitcoin. Then the next support at 866 sats could be the buying point.
One thing to bear in mind is the turbulent and erratic nature of bitcoin – a sudden thrust up or slide down is always on the cards which would invalidate this and all other analysis and predictions. In such cases, market is shaken up with most traders exiting altcoins and entering bitcoin positions, especially in the initial phases of bitcoin pumps. So it is always good idea to keep a close eye on bitcoin’s behaviour before opening a long or a short on any other coin in the market.
Should this happen, stop by again to check out our updated charts and thoughts.
Trading volumes, as usual, are not looking good – reported volume is around $52 million but the actual volume is $17 million, putting the reported volume into a 3.2x discrepancy to the “Real 10” volume (trading volume on the exchanges that prevent wash trading). This means that ADA’s liquidity is marginally inflated which is pretty much the case with the…