Technical Analysis and Market Entry: ADA/USDT Bulls Reloading Momentum For Another Driver Higher
- Cardano’s ADA is forced to give back some of its profits, following a strong run higher.
- ADA/USDT bulls are attempting to break down a critical bearish market structure.
ADA/USDT: Recent Price Behaviour
Cardano’s ADA is undergoing a minor correction following a strong breakout to the upside, within recent days. The desired targets from the last technical write up were achieved, as a result of the strong bull run. ADA/USDT ran up to four-week highs after some life was kicked back into the bulls. The price has now been rallying four consecutive weeks, having gained as much as 42% within the noted period. It has not enjoyed a straight run higher like the one being observed, since March 2019.
ADA/USDT was forced to reverse all of the 2019 bull runs, where the price had initially gained some 188%. Sellers came into play in June up at $0.10500; the price had last traded here back in September 2018. The fall of ADA from the noted highs has observed as a loss of around 70%, recently managing to stabilize. Buyers strongly defended the range of $0.03500-0.025000, a decent demand zone, as proven at the back-end of 2018. On two occasions now ADA/USDT had bottomed out at these depressed levels.
Bearish Market Structure
Given this trend to the downside that commenced in June, the market structure has been stubbornly bearish. Lower highs and lower lows have been produced, with ADA/USDT still struggling to escape this. The most recent rally has been stopped short by the prior high up within the $0.04500 territory. It is a known supply area and of significance, given that it is the last barrier to break the detailed market structure.
Once the bulls successfully smash through this, it should void the bearish technical view. A new wave of buying momentum could likely follow if this occurs. The door would very much be left wide open for the buyers to further capitalize on, with foundations laid for a strong recovery.
As earlier described, the targets of the last ADA/UST technical analysis were successfully hit, further moves to the upside are still eyed. Price action within recent trading has managed to find some daily support of around $0.041300. Another buy position is desirable within this price area, with targets to the north at; $0.05000, $0.053500 and then $0.060000. Stops to be placed at $0.039800.
Should the price fail to hold above the noted daily support, then another entry attempt would be eyed at $0.034500. Stops on this entry points would be placed at $0.031500.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.