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.
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.
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