By
Steve Muchoki
April 19th, 2024
Only a radical fundamental event can forcefully bring about a significant rally in the market on the daily chart.
Key Highlights:
- There may be a break out of the consolidation this week;
- more bullish candles are formed;
- the price may retest the supply zone of $0.08 after the breakout
ADA/USD Price Long-term Trend: Ranging
Supply Zones: $0.08, $0.11, $0.13
Demand Zones: $0.05, $0.04, $0.03
Cryptocurrency is ranging in its long-term outlook. The coin started ranging immediately the coin headed towards lower trend line and broke the last week strong demand Zone of $0.08 and continued its bearish movement in its long-term. The Bulls were able to push the price from the demand zone of $0.05 toward the dynamic resistance of 50-day EMA but could not break through and started consolidation at the region last week.
The price is currently between the 4-day EMA and the 50-day EMA at $0.08. Only a radical fundamental event can forcefully bring about a significant rally in the market on the daily chart. There is a probability that the price may break out this week of supply zone of $0.08, move upward towards the upper supply zone of $0.11 should the buyers increase their momentum. As the RSI 14 is at 50-levels pointing towards the north; there is a probability that the price will increase this week.
ADA/USD Medium-term Trend: Bullish
ADA/USD on the medium outlook is bullish. The price rallied towards the north after it had a rejection from the demand zone of $0.05 which ended up with the formation of the bullish candles on 4-H chart last week.
The price moved up and broke the supply zone of $0.08. The coin is currently above the 4-day EMA which has crossed the 50-day EMA upside. At present, the price is above the supply zone of $0.08 with the formation of more bullish candles.
The RSI 14 is above 70 levels with the signal line pointing upwards. There is a probability for the coin to retest the supply zone of $0.08 again before continues its uptrend movement. Should the supply zone of $0.11 broken, an uptrend movement will be triggered towards the upper supply zone of $0.13. Traders should patiently follow the trend.