By
Steve Muchoki
April 19th, 2024
In case the bulls gather momentum and break up the supply zone of $0.050 Cardano will resume its uptrend and may have its target at $0.058 supply zone.
Key Highlights:
- Cardano price resume another consolidation mode;
- the breakout to the south may bottom the coin at previous low;
- ADA price may have its target at $0.058 in case it breaks out to the north.
ADA/USD Price Long-term Trend: Ranging
Supply Zones: $0.050, $0.058, $0.068
Demand Zones: $0.042, $0.032, $0.021
ADA commences a ranging trend on the long-term outlook. Cardano price fell to the demand zone of $0.042 from the high of $0.058 with the aid of a bearish engulfing candle. Three days after, the coin broke the demand zone of $0.042 downside, the bearish momentum was lost and the bullish bottom tweezer candle formed which pushed up ADA price above the $0.042 price level where it started moving sideways. The ADA price is currently ranging within the range of $0.042 and $0.050 price level.
The two EMAs are already closed to each other with Cardano price trading directly on the 21-day EMA and the 50-day EMA which indicates that consolidation is ongoing. However, the Stochastic Oscillator period 14 is above 30 levels with the signal lines pointing upward which connotes buy signal. In case the bulls gather momentum and break up the supply zone of $0.050 the coin will resume its uptrend and may have its target at $0.058 supply zone.
ADA/USD Price Medium-term Trend: Bullish
ADA/USD is bullish on the medium-term outlook. Immediately the coin bottomed at $0.042 demand zone on January 10 it started consolidation till January 13 when a bearish momentum rolled down the coin towards the demand zone of $0.032 after broken down the demand zone of $0.042. At that point the bulls rejected the price declination, bullish engulfing candle formed which reversed the trend, the two dynamic resistances was penetrated to the north and the price is placed above the $0.042 price level.
Cardano price is consolidating on the 21-day EMA and 50-day EMA. The Stochastic Oscillator period 14 is above 60 levels with signal lines interlocked not yet showing any direction indicates that consolidation is ongoing in which it will soon break out. The breakout to the south may place the coin at its previous low of $0.032.