In a recent episode of the popular crypto market commentary YouTube series “Cheeky Crypto,” the host (Nick) got into a detailed technical analysis of Cardano (ADA). The video provides insights into the recent performance of ADA and what might be expected next.
Nick begins the video by addressing some confusion caused by recent videos about market expectations. He maintains his belief that a market crash is imminent, followed by a pump. He criticizes individuals who change market directions without logical explanations and finds it absurd that he has to acknowledge this behavior in a video.
The video discusses the concept of time horizon and how things do not move in straight lines. It suggests that in order to go up, one must first go down and vice versa. Nick believes that this concept is straightforward and simple because they look at this stuff every day. He aims to provide more futuristic thought patterns and larger timelines for the viewer to consider.
The video includes a chart comparing Cardano’s ADA against USD Tether (USDT) on the Bitget spot exchange using a one-hour time frame. It discusses the use of smart money concepts by Lux Algo to identify big orders coming in and out of the market. It explains that fair value gaps have a tendency to get filled out and mentions a candle that should be marked up as a fair value gap but hasn’t been.
Nick discusses fair value gaps in the cryptocurrency market, specifically focusing on the ADA coin. These gaps are created from imbalances in the order books, where large buy orders are not being met by sufficient selling pressure. This causes the price to increase from the low to the high side, resulting in buyers paying a higher price than they initially wanted. This is a strategy used by smart money in the market.
The video discusses the movement of prices in the market and suggests that there are overlapping movements and fair value gaps. It also mentions the possibility of prices moving downward and recommends checking out a platform called Bitget for trading.
Nick analyzes a chart and identifies a possible move to the upside, with a double top formation indicating a bearish trend. However, the confirmation of this move will only be determined once a better structure is established to move to the downside. He also mentions the potential for a five-wave drop in the price.
The video concludes with the host stating that there may be another move to the downside before attempting to push up again. Nick expresses his personal opinion that there will likely be a mass sell-off of ADA soon, which will result in a drop in price. He believes that the current relief rally is not sustainable and that there will be a lot of volatility in the ADA market. However, he also sees this as a fantastic opportunity for many.