ADA/USD Market Structure: Q1 2021 so far

ADA/USD Market Structure: Q1 2021 so far

By idm | Psychologica | 26 Feb 2021


ADA/USD Market Structure

This post examines ADA/USD price and volume movement from Jan-01 to Feb-26.

The year starts with ADA around 0.1 USD. During the first week, strong buying pushes the price to 0.35 USD. In fact, a substantial amount of all the volume so far in 2021 occurred in the first week.

For the remainder of January, ADA trades sideways within a very narrow channel about 0.1 USD wide. There are several high-volume movements - on January 22 and January 29 - but these did not affect the price much.

In the first week of February, ADA begins to gain substantially on USD. It does not look like there's a lot of volume driving this gain.

By February 11, ADA is trading above 0.9 USD - and there is some moderate volume moving around 0.9 USD.

During the final week of February, ADA manages to stay above 0.9 USD, even as the price oscillates dramatically into the low 1 USD range.

How to read this plot

This plot depicts the movement of ADA quoted in USD, for the year 2021 to date. Data for ADA/USD were collected from Kraken.

The width of the line is proportional to the volume traded during that period. Similarly, lighter colors correspond to higher volume.

The peaks and troughs have been identified. Peaks were connected to form channels containing most of the price action.

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idm
idm

Ian is a computational psychologist who studies memes, crowds, and markets.


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