Cardano Price Analysis - May 4

Azeez Mustapha
  • Bulls are in control of Cardano medium-term outlook while it is consolidating in the short-term
  • At critical demand zones, buying is advisable

Cardano, ADAUSD, Cryptocompare chart

ADAUSD Medium-term Trend: Bullish

Supply zones: $0.4000, $0.4200, $0.4400

Demand zones: $0.1800, $0.1600, $0.1400

The bulls’ continue their control of Cardano in the medium-term. The bulls’ pressure was limited as they could not gather enough momentum to break past the $0.3800 supply area. The pair is currently in an ascending channel. Each touch on the lower channel at major demand zones leads to a breakout. Just as it can be seen from the chart above, the demand zones that led to breakout are  $0.2600, $0.2800 and $0.3200.

Currently, price is at the $0.3600 demand area on the lower channel. A breakout is most probable that will drive price up to the $0.4000 supply zone. The stochastic oscillator is in the oversold region and signal pointing up. This denotes strong momentum to the upside as more buyers come into the market.

ADAUSD Short-term Trend: Ranging

Cardano, ADAUSD, Cryptocompare chart

Cardano is ranging in the short-term. The bulls lost grip temporarily and the bears took advantage of this to force price down to the $0.3600 critical demand zone. Cardano currently is in between $0.37500-0.35500.

More bullish candles formed and closed above the three exponential moving averages crossover should be seen as good buying opportunity especially in the demand area. Traders should be strategic and patiently take small profit within the range. The consolidation presupposes an imminent breakout or breakdown.

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.