ADA/USD Is Under Bears’ Pressure, Heading Towards $0.27 Level

ADA/USD Is Under Bears’ Pressure, Heading Towards $0.27 Level

ADA Price Analysis – January 26

Should the bears further increase their momentum and push the price to break down the support level of $0.27, then, $0.24and $0.21 may be tested. In case the price is rejected at the $0.27 level, the price may reverse. The resistance level can be found at $0.34, $0.38, and $0.45 levels.

ADA/USD Market
Key Levels:

Resistance levels: $0.34, $0.38, $0.45

Support levels: $0.27, $0.24, $0.21

ADA/USD Long-term Trend: Bearish

ADA is bearish in the long-term outlook. The coin was under the control of the bulls few weeks ago. The bulls pushed the price to reach the resistance level of $0.38. The price is rejected at the resistance level of $0.38, it reverses and the bears gained enough momentum to break down the support level of $0.34 tested $0.27 level and pulled back. Further increase in the bears’ pressure may penetrate $0.27. Cardano is exposes to the support level at $0.27.

ADAUSD Daily chart, January 26

 

The price is breaking down the 9 periods EMA and the 21 periods EMA while the former is above the later. At the moment, the price is trading between the two EMAs which indicates a bearish movement in the ADA market. Should the bears further increase their momentum and push the price to break down the support level of $0.27, then, $0.24and $0.21 may be tested. In case the price is rejected at the $0.27 level, the price may reverse. The resistance level can be found at $0.34, $0.38, and $0.45 levels.

ADA/USD Medium-term Trend: Bearish

ADA/USD is bearish on the 4-hour chart. The bullish pressure could not withstand the resistance at $0.38. There was a short period of consolidation but the bears eventually prevailed. The price is currently descending towards the support level of $0.27. There is a high probability that the price will decrease to the support level at $0.24.

Cardano is trading below the 9 periods EMA and 21 periods EMA which indicates bearish momentum and that the bears are gradually dominating the market. The Relative Strength Index period 14 with its signal line pointing down at 40 levels connotes a sell signal.

 

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.