By
Steve Muchoki
April 23rd, 2024
The breakdown of $0.035 demand zone by the Bears’ pressure will expose the demand zone of $0.028 and may be its target, while the breakup of $0.047 price level will make Cardano price find its high at the $0.055 price level.
Key Highlights:
- The consolidation is ongoing in the Cardano market;
- the bulls may take over ADA market in case $0.047 price level does not hold;
- price declination may continue in case there is a breakout at $0.035 price level.
ADA/USD Price Long-term Trend: Ranging
Supply Zones: $0.047, $0.055, $0.058
Demand Zones: $0.035, $0.028, $0.021
On the long-term outlook, ADA is on the ranging trend. The sideways movement started on January 11 immediately after the upward price rejection at $0.055 when the bearish engulfing candle broke down the $0.047 price level. On February 7, ADA experienced a Bearish pressure which bottomed it at $0.035.
Cardano price lost the bearish momentum and was unable to breakdown the demand zone of $0.035. The price bounced at the price level of $0.035 with the formation of a strong bullish candle that pushed the ADA price towards $0.047 supply zone. The bullish pressure broke up the dynamic resistance of 21-day EMA but resisted at the 50-day EMA.
ADA price has been trading over and around the two EMAs in which the two EMAs are closed to each other as a sign of consolidation movement in the ADA market. The coin is currently in between the two EMAs. The Moving Average Convergence and Divergence period 12 with its histogram is horizontally flat on the zero levels and the signal lines interlocked and flat which confirms the ongoing consolidation in the Cardano market and may continue for short period of time.
The breakdown of $0.035 demand zone by the Bears’ pressure will expose the demand zone of $0.028 and may be its target, while the breakup of $0.047 price level will make Cardano price find its high at the $0.055 price level.
ADA/USD Price Medium-term Trend: Bullish
On the medium-term outlook, ADA/USD is bullish. The coin has been very bearish until February 7 when the Bears’ momentum was exhausted at $0.035 price level. The bulls wave into the ADA market with full force and propelled the coin up to break the two dynamic resistances and push it towards the supply zone of $0.047.
The 21-day EMA has crossed the 50-day EMA upside and the coin is trading currently between the two EMAs which imply consolidation is ongoing. The MACD period 12 is below zero levels and the signal lines flat on the zero levels. The consolidation may continue but break out is imminent.