At first glance, the chart in the 1D frame has a very strong bullish marubozu candle. But from the perspective of the methodology, the reality may disappoint many people.
First, it must be affirmed that in the long term, ADA is still in an accumulation structure waiting for a price increase. However, in the last 4 days, the trading volume surged, indicating a large amount of supply being poured into the market. The last time ADA had such a large volume was around mid-2022. Although this time we are in a contrasting context and it seems that the buying side has also gained the upper hand, it cannot be denied that the supply is still present.
The buying side's dominance is reflected in candle number 1 with a large volume and a closing price very close to the top of the candle. Additionally, candle number 2 has an equivalent volume but its size is only half, indicating that the buying side is still absorbing quite well.
However, looking objectively, the closing position of the candle is lower than the resistance level of 1.23 - 1.3, which indicates that there is still a lot of supply present in this area.
Next, candle number 3 has a high volume equal to that of candle number 1, but the range is only one-third.
Thus, the amount of supply has started to show signs of decreasing; however, it is still quite substantial, so the green candle has been compressed within a narrow range and the buying side will need more time to absorb the remaining supply. Therefore, this is the reason why ADA cannot increase in price immediately.
This information is nothing new as I mentioned in the long-term perspective article about ADA. However, if you are in the process of learning about the Wyckoff method, this is a good case study to illustrate the "Effort - Result Law."
