Cardano long position vs market dominance for BINANCE:ADAUSD by LupaCapital

Hello Traders and Analysts,


1. Note

2. Contents

3. Research breakdown

4. Education recap

5. Information on Lupa.

A Note before reading – this is a forecast analysis – based upon our trading strategy. This is tagged Long, due to purchasing further increments upon imbalances.

Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.

Master Key for zones

  • Red = Three Month
  • Blue = Monthly
  • Purple = weekly
  • Scarlet – Four day
  • Orange = Daily
  • Green = 8 Hour, 16hour
  • Grey = 4hour
  • Pink = 1 hour

See dominance chart below

Understanding the Market Capitalisation of the coins history.

The privatised tracking will be found at the bottom – to view click the link.

Here is the Bitcoin market imbalances cap – monthly chart

Weekly Bitcoin Market Cap
Notice the equal lows which have formed the famous double bottom formation.
The weekly trendline whilst steep has now seen a sell off, but now can establish a take back being the dominant coin.

Daily Market Cap with BTC price
Notice the daily imbalance on the market cap and the price chart equate to the same position opportunity.

BTC – candle sticks

ETH – purple

BNB – Rose pink

XRP – Orange

ADA – Green

Tracking the major coins as of 6th October 2021
BTC – 44.69%
ETH – 18.51%
BNB – 3.19%
ADA – 3.11%
USDT – 2.95*
XRP – 2.22%

* based on a fictional USD stable coin derived from Fiat.

Cardano Write up

Monthly structure

The market is presenting an interesting scenario;

Whereby price has tested the 0.236% Fibonacci – and rejected. However, price can still revert to this level.

I.// Where price retests, and rejects further – look to a buy probability with the imbalance closing out with the equal wick to the previous month, assessing the low reactive point.

II.// If price indicates a reactive level break, add a net sell position to hedge long positions creating an absolute return positive.

Weekly Impulse, correction, Impulse waves?
Notice, that price has reverted back upon the first Fibonacci sequence wave from the established “0” to 0.705 upon the structure.
Using the price wave theory as a basic concept – price has made the consolidation one since the initial tail off from the peak back in 2018. Price has provided a gearing process where the imbalance can be closed out in creating the next sequence high using imbalances, and Fibonacci targets for extension targets.

The reversion pivot points are 61-70.5% creating the imbalance confirmation – where price will look to as a position of interest to change hands of sellers to buyers if required.

Weekly Market capitalisation of Cardano
The trendline is being respected, however also take into account the pathway in which the % of dominance for ADA shows an opportunity for longs as the overall picture is an uptrend swing based off previous % dominance. Refer to the chart below.

Taking the theory and applying said wave; shows the possible predictive pathway – reason being, price has a volume increase, propelling a multitude of in-flow into the market capitalisation.
looking to Marketcap: – we have seen that Cardano currently amounts to $77.3B in market cap, with a market share of 3.6% as of September 15th 2021. Updated to October, whereby the marketcap is now 2.86%, meaning that there is now a proportional move to the growth of the market capitalisation in general – meaning if, BTC dominance ideally flows back towards previous dominant percentages, . The target percentage of 60% for example will grow the price of BTC and the entire market cap, the relationship of inflows to ADA, ETH and other cois will all provide valuable growth too, as will a correlative price with it. Hence the bullish sentiment.
and the model assumptions taken from the base case and conservative targets, overall – the buyers are ever present, looking at the current supply of 71% of tokens circulating, this enables us to understand where price will move in the future as the supply ever reaches full circulation.

** If you are interested in the model of the market cap – please send a message via Tradingview.

The Daily correction, has provided a solid basis for additional opportunities.

The pathway

Whilst BTC and ETH have market dominance, note the importance of the price fluctuations upon these cryptocurrencies, whereby large imbalance moves positive and negative will have a correlative but not a causative response.

The idea of having the imbalance at the previous is historical, based upon market structure and explained above.

Using the market Capitalisation
See the weekly chart below in reference to the following;
BTC – White
ETH – Purple
ADA – Light Blue

The correlation upon the three largest crypto’s all have a relativity and looking over the charts all have similar imbalances , Bitcoin being the most dominant, offers the shift in change first, followed by a lag time for ETH and ADA as the chart shows.

Though the products follow different develops within their own space, please note – from a technical aspect the chart still shows a strong factor for clear opportunities to buy, sell based upon price reactive levels – which correlate to the market Cap.

If you like the idea, please leave a like or comment.

To all the followers, thank you for your continued support.



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