By
Svetlana Soroka
May 11th, 2024
The increase in the Bears’ pressure may lead to the breakdown of $0.037 demand zone and Cardano price may find its low at the $0.030 price level. Alternatively, if the price level of $0.037 holds the Bulls may take over the ADA market.
Key Highlights:
- The Bearish trend is maintained in the Cardano market;
- the bulls may take over ADA market in case $0.037 price level hold;
- price declination may continue.
ADA/USD Price Long-term Trend: Bearish
Supply Zones: $0.042, $0.050, $0.058
Demand Zones: $0.037, $0.030, $0.021
ADA maintains its bearish trend on the long-term outlook. The Bearish momentum was maintained, Cardano price could not reach its last week target but moved towards it; this is due to the bears’ low pressure. ADA price has shifted away from the consolidation point making attempt to break down the demand zone of $0.037. The distance between the two EMAs was gradually increasing which implies that the bearish trend is seldom increasing. The bearish momentum in the ADA market is with little or without bulls’ interruption.
Cardano price remains trading below the two dynamic resistances and support (21-day EMA and 50-Day EMA) which connotes a bearish momentum and the two EMAs also were bending to follow the trend. The Stochastic Oscillator period 14 is below 20 levels (oversold region) and the signal line pointing to the south connotes a bearish trend continuation which may be for a short period before the bulls take over.
The increase in the Bears’ pressure may lead to the breakdown of $0.037 demand zone and Cardano price may find its low at the $0.030 price level. Alternatively, if the price level of $0.037 holds the Bulls may take over the ADA market.
ADA/USD Price Medium-term Trend: Bearish
On the medium-term outlook, ADA/USD is on the bearish trend. There was a bullish rally of the ADA price towards $0.042 supply zone after breaking up the 21-day EMA dynamic support and resistance but the upward movement was rejected by the 50-day EMA resistance level. Strong bearish engulfing candle formed and the bears pushed the coin to the low of $0.037 on February 1. ADA price has penetrated the demand level of $0.037 where it is consolidating.
The 21-day EMA and 50-day EMA were above the Cardano price as a bearish trend indication. The Stochastic Oscillator period 14 is below 40 levels with signal lines pointing down which indicates that further price declination is envisaging.