ADA/USD Price: A Double Top Chart Pattern Formed, Price Reduction Envisaged 

Azeez Mustapha
2 December 2020 | Updated: 2 December 2020
ADA Price Analysis – December 02

The price may reach the support level of $0.10 provided the bears were able to push down the price to penetrate the support level of $0.13 and $0.11. Above the current price level, resistance levels are found at $0.15, $0.17, and $0.19.

  ADA/USD Market
Key Levels:

Resistance levels: $0.15, $0.17, $0.19

Support levels: $0.13, $0.11, $0.10

ADA/USD Long-term Trend: Bearish

Cardano is under the bears’ control. The coin was increasing last week to test the resistance level at $0.17 after penetrating the $0.15 level. The Bulls’ momentum breaks up the $0.17 but could not sustain the momentum due to the bears’ pressure. The price decreased to $0.13 where it bounced back to retest the previous high level of $0.17.  The just mentioned level was tested two times within a week. The price is currently repelling from the level moving towards support level of $0.13.

ADAUSD daily Chart, December 02

The coin is penetrating the 9 periods EMA targeting the 21 periods EMA in which if it is crossed downside, it will confirm bearish trend. The price may reach the support level of $0.10 provided the bears were able to push down the price to penetrate the support level of $0.13 and $0.11. Above the current price level, resistance levels are found at $0.15, $0.17, and $0.19.

 

ADA/USD Medium-term Trend: Bearish

ADA/USD is bearish on the 4-hour chart. The price action has formed a double top chart pattern on the 4-hour chart. The price touched the resistance level of $0.17 on November 24 and pulled back to test the support level of $0.13. The bulls picked up the coin and the resistance level at $0.17 was retested second time. The mentioned level still holds, the price declining towards the support level of $0.13.

ADAUSD 4-hour chart, Becember 02

The fast moving average (9 periods) is crossing the slow moving average (21 periods). Cardano is trading below the two EMAs which indicates strong bearish momentum and that the bears are taken over the market. The Relative Strength Index period 14 with its signal line strongly pointing down at 40 levels connotes further price reduction.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

 

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Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.