ADAUSD Medium-term Trend: Ranging
Supply zones: $0.2600, $0.2800, $0.3000
Demand zones: $0.1800, $0.1600, $0.1400
Cardano is ranging in the medium-term. The bears briefly lost momentum and were overpowered by the bulls at the $0.1701 demand area. The bulls took the advantage of increased momentum and broke two critical supply areas at $0.01800 and $0.2000. They took the price up to the $0.2143 supply area. The double top formation in this area brought the bears back, currently exercising pressure on the price downward push. The daily candle opened bullish at $0.1979, compared to yesterday’s opening of $0.1738. This implies that the buyers are gradually returning back to the market. The price is currently above the three EMAs crossover, which implies buyers’ pressure.
The stochastic oscillator has left the overbought region and its signal is pointing down, which connotes a downward price movement due to the bears’ pressure. Both the bulls and the bears are in a serious fight over the control of the market. Cardano is trading between the upper supply area at $0.2143 and the lower demand area at $0.1701. Traders should be patient and allow for trend definition before taking a position after a breakout to the upside or a breakdown to the downside.
ADAUSD Short-term Trend: Ranging
Cardano continues to consolidate in the short-term. The bulls broke the upper supply area of yesterday’s range and pushed the price up to the $0.2168 supply area. The bears’ efforts were seen at this area and the price was pushed down to the $0.1950 demand area. The bulls came in again and returned the price to the $0.21600 supply area. The bears are back again and their current activity is taking the price on a southward journey. $0.2150 is the upper supply area of the range while $0.1850 is the lower demand area. Patience will be a good strategy to adopt during this consolidation period to allow the pair to either breakout to the upside or breakdown to the downside before placing a trade.
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