The Journey Begins
ADA 1W Timescale

The Journey Begins

By Randal | Trading With Randal | 20 Oct 2021


Most of us have been watching BTC, ETH, and BNB with anticipation this week. Should we expect the bull run to continue, or is there a retracement coming? If you've been following ADA, you might be concerned. It's been dropping for some time and the fear and doubt articles are starting to come out of the woodwork. Let's look at each of these tokens and see if we can determine how they're going to perform in the upcoming weeks.

This post is primarily designed for Long traders (Week/Bi-weekly trading). 

BTC Analysis:

Bitcoin_10_20

The indicators I'm currently using are Ichimoku Cloud (first --top), Volume (second), MACD (third), Stochastic RSI (fourth -- bottom).

The Ichimoku Cloud suggested that the best time to buy was in early October, however, it also seems to suggest that there is still more growth ahead. Bitcoin doesn't seem to be slowing down. In fact, the bull run seems to be projected to continue well into November. Short of any hard-hitting news, the Ichimoku Cloud has promising results. Prices are above the Cloud, the Senkou A and Senkou B have steady separation, and Tenken Sen and Kijun Sen have some solid distance. Even the trailing indicator, the Chiku Span, has some solid distance from triggering any sell indications. There appears to be a slight short signal on the horizon in late October/early November, but a glance at the Stochastic RSI would help explain any slight retracement on this otherwise incredible run.

The Stochastic RSI is showing that BTC is a bit overbought. We may see a slight correction in the next two weeks, but my thoughts are on slight. Personally, I'm going to wait for that moment and see if I can buy into the slight dip.

The MACD is an indicator that I often use to confirm negatives; I've seen it show a lot of false positives. The separation and continued uptrend is promising, but I don't typically rely too heavily on this indicator for positive trends.

ETH Analysis:

Eth_10_20

My thoughts on ETH happen to be very similar to those on BTC. The Ichimoku Cloud shows that the downtrend is strengthening. This seems to be confirmed by the Stochastic RSI correcting. We might see resistance levels grow through early November, but ETH also seems to be on a good run. We don't see any strong sell signals from the Ichimoku Cloud. We don't see any strong buy signals yet either. For now; this one seems to be a watch and wait situation.

BNB Analysis:

bnb_10_20

BNB has had a good month but, it looks like the downtrend will be gaining some strength well into early November. Like ETH, it's a bit over-bought and a correction may be on the way. There are no clear "sell indicators" that I see at the moment, so for now it seems like a good one to HODL. BNB might also be one to watch each day.

Cardano Analysis:

Cardano has been getting some heat in the news lately. I have not seen a lot of kind articles. Is this downtrend really signaling the death of Cardano? Let's take a look.

ada_10_20

Cardano has some conflicting indicators here. The volume is much lower than it was around the peak $3.10. The MACD seems to suggest a slight uptick and some growth, as does the Stochastic RSI. The MACD is awfully close together; it is too hard to say what the duration of the trend it is predicting. Perhaps the most condemning indicator is the Ichimoku Cloud. The Senkou lines suggest that the downtrend is going to gain strength well into November. This isn't a good sign for an already struggling token. In addition, the Tenken Sen crossed below the Kijun Sen; a clear sell signal. The Chiku is also indicating sell. We may see a slight uptrend coming in the next few days, but the price will step right into the Cloud. This is too risky for traders using the Ichimoku Cloud, so any buy signal from the Tenken & Kijun are unlikely to be adhered to at that moment. All in all, it looks like Cardano may stagnate or decrease a bit in the upcoming weeks.

But is this the death of ADA? I doubt it. When a token jumps as high as ADA did and then retraces, it is important to take a step back and look at the projections on a wider timescale. While tokens are retracing, I think it's beneficial to conduct another analysis before abandoning a HODL position.

ADA_weekly_10_20

The 1W scale clarifies the madness of the 1D scale. ADA's current performance looks like a classic retracement following a large bull run. In this, the Ichimoku Cloud, MACD, and Stochastic RSI all seem to be in agreement. We may see an additional dip in the next few weeks for ADA, but I don't think any alarm bells should go off unless it is still declining as we approach 2022.

If you like this post and would like to see more, please let me know!

Disclaimer: This is not financial advice. I am not a financial expert. I am a normal person who is still learning. I'm offering my personal thoughts on the price movements, and any comments, questions, or advice is welcome. Please do your own research.

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Randal
Randal

Just a savage man learning about the refined world of crypto.


Trading With Randal
Trading With Randal

I'm learning to swing trade crypto currencies. This blog will track my journey from paper trading zero to a diamond handed World Champion. Each week I'll post my thoughts on the price movements of tokens I'm tracking. I'm currently tracking the top 4 -- BTC, ETH, BNB, and ADA.

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