We will begin with understanding the critical characteristics of the recent Market Phases that ADAUSDT has traded. Observing from the chart, price action traded in a strong bull trend until a break of key Dynamic Support. This led to further downside, though ADAUSDT has established a probable reversal structure as of most recent.
Phase One: During this Phase, ADAUSDT confirmed Weekly S/R as support. This is where the trend picked up momentum as it continued to respect its Dynamic Support. Price action traded in a distinct range between two weekly levels before eventually breaking out.
Phase Two: Price action remained bullish with consecutive Bull Pennants playing out. ADAUSDT in this phase was looking very strong until it established a local top, which eventually broke key Dynamic Support.
Phase Three: The more recent phase began with a confirmed trend reversal by breaking the lower high projection. ADAUSDT showed initial weakness as price continued to trade back towards its Weekly S/R. However, as of late, ADAUSDT has morphed into a reversal structure showing signs of strength.
We will cover these phases in further detail on the following pages with corresponding Technical Analysis.