Technical Analysis and Market Entry: ADA/USDT Seeing Critical Retest of Breached Bearish Flag
- Cardano’s ADA has been on the run over the last five trading sessions, gaining some 28%.
- ADA/USDT is undergoing a critical retest of a breached bearish flag structure, via the daily chart view.
ADA/USDT: Recent Price Behaviour
Cardano’s ADA is staging a decent rebound, after being under significant selling pressure during last week’s trading. ADA/USDT had dropped a chunky 25%, in its worst weekly performance seen since the week of 23 September. The price during that noted period had fallen some 28%. In terms of the latest drop, it is the lowest the price has been since the week of 17 December 2018.
ADA/USDT price action has been firmly within the control of the market bears; this has been observed since the latter stages of June. It followed the price rallying up to highs for 2019 at $0.10700, the highest since August 2018. Selling pressure had intensified after a critical ascending trend line was breached in July. It had been supporting the price during the bull run, seen through the first half of the year.
Bearish Flag Breach
Price action from 25 September up to 17 November had been consolidating, as a result forming a bearish flag structure. The generally sideways trading came following the steep fall between 19 – 24 September. ADA/USDT remains within a long downside trend when rallies are observed; they are seen as limited and sold by market bears. On 20 November the sellers breached the flag, inviting a fresh wave of pressure to the south.
Following the breakout, ADA/USDT has since been able to stabilize, bouncing off a critical demand zone. It runs from $0.03355 down to $0.02800, a significant area which found needed buyers in late 2018. The most recent bounce, as mentioned, has seen decent momentum to the upside. ADA has gained some 28% at the time of writing, from $0.03300 up to the current market price $0.04200. A retest of the broken down pattern is now being eyed.
Despite the current upside momentum, potential short opportunities are being eyed. It is in anticipation of rejection upon a retest of the broken down the flag. The short area would be around $0.04350 up to $0.04650; targets eyed down at; $033500, $0.03000 and then $0.028000. Stops would be placed above the flag at $0.05000. The move would mark a technical breakout and retest of the detailed structure.
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.
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