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 strong bearish pressure successfully broke the lower demand area at $0.03800 of the range on 6th February. The cryptocurrency went further down at $0.03592 in the demand area.
The pressure needed for a further push down was absent with the formation of a gravestone doji on 7th February in the context of a downtrend suggesting the bulls are gradually returning.
ADA chart by tradingview
Confirmation to the bullish takeover occurred with a large bullish engulfing candle on 8th February. ADAUSD rose to $0.04343 in the supply area back within the range. The bulls continued to push further up and the price is at $0.04399 as the new trading week commences. With the price between the two EMAs and the stochastic oscillator signal pointing up at 82% in the overbought region this suggests that upward price movement may occur within the range in coming days.
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 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.