Hello and welcome to another update video about Adar. The crypto market seems to have started quite friendly into the new crypto week, with Adar currently attempting to break out above a trend line on the chart. However, this breakout attempt is still within the previously defined range, so there's nothing too exciting going on there.
If things go well from a breakout point of view, it could lead to a test of previous swing highs, which could act as initial structural resistance. This resistance area is roughly between 46.2 cents to 47.8 cents. Breaking above this resistance would likely lead to a test of the upper green line, which sits at 52.2 cents. This level has been mentioned for several weeks and is crucial for favoring a more bullish scenario.
Currently, the chart indicates that Adar is moving within a range, potentially forming an Elliott wave triangle. Any movements within this range are considered noise for range traders but may not indicate significant progress in the chart.
The current Elliott wave triangle pattern suggests that Adar may see one more lower high before breaking out to the downside. The recent reaction near previous swing lows keeps the potential for the triangle pattern alive. However, a breakout below the red line at 41.9 cents would confirm this triangle pattern.
If Adar breaks above the resistance zone and the green line, it would suggest an extension of the triangle pattern. However, a break below 41.9 cents would indicate further downside potential, possibly down to the support zone between 36 and 38 cents.
In summary, Adar is currently in a larger reversal zone, allowing for the possibility of one more low before potentially reversing upwards. Ideally, any further downside would be limited, with the target zone between 36 and 38 cents. Confirmation of a bottom would require seeing five waves to around 65 cents.
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