By
Svetlana Soroka
May 19th, 2024
There may be downtrend continuation in case there is a break out of the price at the demand zone of $0.08, traders should be patient for the breakout confirmation at the upper supply zone or break down at lower demand zone before taking a position.
Key Highlights
- There is a probability of a further decrease in rate;
- ranging pattern confirmed;
- traders should be patient for the break out confirmation.
ADA/USD Price Long-term Trend: Bearish
Supply Zones:$0.11, $0.13, $0.17
Demand Zones: $0.08, $0.07, $0.06
Earlier last week Cardano continued its bearish movement in its long-term outlook. The bearish movement on the daily chart has contained ADA/USD within the rectangular channel, ranging between the supply zone of $0.11 and the demand zone of $0.08.This downward movement was aided by the bearish pressure that broke the last week strong demand zone and the coin was exposed to another strong demand zone of $0.08 at which it retraced to the supply zone of $0.11.
The EMA 4-day remains below the 50-day EMA and ADAUSD remains below the 4-day EMA. Presently, on the daily chart, there are formations of more bearish candles which indicate the possibility of the downtrend continuation, in case there is a break out of the price at demand zone of $0.08. This will require strong bearish pressure from the seller. RSI is below the 40-level pointing towards the 20-level. There are possibilities for further downward movement next week.
ADA/USD Medium-term Trend: Bearish
On the 4-H chart, the price broke the supply zone of $0.11 to the downside, which led to further downward trending to the demand zone of $0.08. Currently, ADA returns to the range in its medium-term outlook. It is ranging and trading between $0.11 and $0.08 levels. Uptrend movement could be triggered in case the supply zone of $0.11 is broken.
Traders should be patient for the breakout confirmation at the upper supply zone or break down at lower demand zone to occur before taking a position.