For starters this has happened every time the price is above the 20 and 50 daily MA, now ADA is above the 50 but not the 20, so if it goes above 20 this is more reassuring.
- The has gone under 47 and bounced back above it (the red ellipsis). This has happened twice.
- The has gone above 47 and then retest 47. (yellow ellipsis). This has happened three times (and now we are seeing this is happening).
The blue ellipsis were times when one of the previous scenarios occurred, but the value of ADA wasn’t above the 20 and 50 MA.
In addition, lets say this is the start of an impulse wave. The wave 1 and 2 have been completed, now we need to see if wave 3 happens with a breakthrough above $3. Afterwards we could see a wave 4 retest to $3 and then a final wave 5 to $6.
Price target: Short term (one or two months): 6, Medium term ( 3-4 months): 10
Explanation: Taking into account the trendline of the last two peaks, we can use that as resistance. The last times we have seen gains according to the above, the average gain has been 356% more or less, with the lowest gains being 74% and the highest being 1117%. A conservative price target in the short term would be 6 because that would be 134% gains, which is way below the average of the previous gains. I do believe that if ADA follows this upper trendline and follows the channel depicted by the white lines, it could reach 10 by the end of the year.
Note: This is not financial advise, I could be wrong, so DYOR. If you find a flaw in what I have said please tell me.