Cardano (ADA) Long-term Price Analysis- January 22

  • The long-term outlook remains in a range-bound market.
  • Traders may take small profit with a good ranging strategy as the bulls and the bears struggle for control of the market.

ADA/USD Long-term Trend –Ranging

  • Supply zone: $0.0600, $0.0800, $0.1000
  • Demand zone: $0.0100, $0.0080, $0.0060

ADA remains in a range-bound market in its long-term outlook. The bullish pressure from the railroad of 14th January resulted in a rally week that saw ADAUSD up at $0.04833 in the supply area on 19th January. Exhaustion of the bullish momentum was noticed as the candle closed with a wick.

The new trading week started on a bearish note with the formation of a large bearish engulfing candle at $0.04632. This confirmed the bears' control of the market.

Cardano, ADAUSD, Cryptocompare chartADA chart by tradingview

ADAUSD had dropped to $0.04240 in the demand area as the price lies below the two EMAs crossover and the stochastic oscillator is in the oversold region. Its signal points down at 19% an indication of further momentum to the downside.

ADAUSD is consolidation and trading between $0.05200 in the upper supply area and at $0.03800 in the lower demand area of the range. A breakout at the upper supply area may be considered for a long position after a retest while a breakdown at the lower demand area may be a short position with good candle pattern as confirmation for entries. Hence patience is needed to allow this to occur before taking any back position.

 

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