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.
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.
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