The past trading week on the cryptocurrency market clearly showed who is who. Through a steady decline of the BTC dominance, each coin or token was able to show its character, ambitions and plans. One of the most promising and strongest coins turned out to be ADA. If a few weeks ago we expected the ADAUSDT price maximum growth to $2, then on 14 May in our idea we increased the target for growth:
Critical point for ADA buyers is $2.5-2.7
As you can see, our forecast has worked out and now the question arises. Do buyers have enough strength to continue their growth trend and not pay attention to Bitcoin?
The new growth impulse in the ADA market, which began on 5 May with the break of the 2-month consolidation upward, continues to this day. Buyers are quite confident in defending the lower trend line of the white channel:
The daily timeframe shows the ADA market growth begins to slow down before the range of $2.5-2.7. So far, buyers have been able to buy out the entire offer of sellers, despite the massive BTC price fall. However, by the nature of the ADAUSD price growth, it seems that buyers are locally weak and the price tends to correct and test $2. This correction will take place within the buyers’ growth channel. And after it buyers will easily continue their attack on the range of $2.5-2.7.
Losing the mark of $2 will bring the ADA price back to the range of $1.5. Such a scenario will postpone the growth trend in time, but will test buyers for strength.
If the ADA price grew up when BTC fell, what will happen during the BTC price growth? At first glance, it seems that in this case, the ADA market should grow insanely without looking back. Though, one should not forget that Bitcoin ceases to affect strong coins both during a fall and during an increase. Therefore, in this case, we analyze the ADA market without taking into account the scenario of the BTC price movement.
ADABTC price close to an important liquid zone
If we analyze the ADABTC price movement, it becomes clear that for the whole previous week, BTC investors have been investing their Bitcoins in the ADA market:
The chart shows that the ADABTC price is reaching the super powerful liquidity zone from which the global fall in 2017 began. Therefore, it should be understood that at least a local rebound from this range will be. And this will be a great chance to buy ADAUSDT at a better price.
1) We expect a retest of the range of $2.5-2.7, after which a correction may begin with the first target of $2.
2) A full correction in the ADA market with checking the global plans of buyers should end above $1.5.
3) After working out these conditions, we will look for the next target for fixing profit.