By
Svetlana Soroka
April 29th, 2024
The bulls need to increase its momentum in order to break up the supply zone of $0.047 and this will expose Cardano to the supply zone of $0.055. Likewise, high pressure is required to break down the demand zone of $0.035 by the Bears.
Key Highlights:
- High momentum is required by the Bulls to break up $0.047 level;
- the consolidation is ongoing in the Cardano market;
- the breakdown of $0.035 will push ADA price towards $0.028.
ADA/USD Price Long-term Trend: Ranging
Supply Zones: $0.047, $0.055, $0.062
Demand Zones: $0.035, $0.028, $0.021
ADA is still moving sideways on the long-term outlook. The crypto has not made any significant rally to the north or to the south. The range-bound movement which started on January 11 still remains within the supply zone of $0.047 and the demand zone of $0.047.
The bearish engulfing candle formed on February 21 could not push the coin down to the demand zone of $0.035 before it was rejected by the bulls. The bulls pushed the coin to the previous high and lost the momentum. Another strong bearish engulfing candle pushed Cardano price down to the dynamic support and resistance level.
The 21-day EMA remain twisted around the 50-day EMA with ADA price trading directly on the twisted EMAs which is an indication that consolidation is not yet over in the ADA market. The Relative Strength Index period 14 is at the 50 levels and the signal lines are flat horizontally showing no direction confirms the consolidation which may come to an end soon.
The bulls need to increase its momentum in order to break up the supply zone of $0.047 and this will expose the coin to the supply zone of $0.055. Likewise, high pressure is required to break down the demand zone of $0.035 by the Bears.
ADA/USD Price Medium-term Trend: Ranging
ADA/USD is ranging on the medium-term outlook. The bullish momentum places Cardano price at $0.05 price level on February 24, shortly after that the Doji evening star candle pattern formed which is a bearish reversal candle, this pushed the coin down below the two EMAs after the break down of $0.047 price level. Cardano started consolidation below the EMAs.
The 21 EMA and the 50 EMA are still close to each other while the coin is consolidating below the two EMAs. Patience is needed by the traders before taking a position.