ADA/USD Price Approaches a Key Support Level, Reversal Envisaged 

ADA/USD Price Approaches a Key Support Level, Reversal Envisaged 

ADA Price Analysis – October 27

 An increase in the bears’ pressure may lead to the penetration of the $0.10 support level which may drop the price to $0.08 and $0.07 price level. The decrease in the bears’ momentum may prevent the breakdown of the $0.10 support level and this may push up the price to $0.11, $0.13, and $0.14 price levels.

 ADA/USD Market
 Key Levels:

Resistance levels: $0.11, $0.13, $0.14

Support levels: $0.10, $0.08, $0.07

ADA/USD Long-term Trend: Bearish

 The buyers’ momentum is getting weak in the daily chart as the US election day is getting closer. ADA price tested the resistance level at $0.11 but could not penetrate the level due to low buyers’ pressure that cannot withstand the key resistance level. This is what triggers the seller into action with the formation of bearish candles, and the price declining towards the support level of $0.10.  

ADA daily chart, October 27

Cardano price is decreasing as the bears’ momentum increases; the price has crossed the dynamic support level downside, trading below the 9 periods EMA and 21 periods EMA and the former is trying to cross the later downside as a bearish movement confirmation. An increase in the bears’ pressure may lead to the penetration of the $0.10 support level which may drop the price to $0.08 and $0.07 price level. The decrease in the bears’ momentum may prevent the breakdown of the $0.10 support level and this may push up the price to $0.11, $0.13, and $0.14 price levels.   

 ADA/USD Medium-term Trend: Bearish

 On the 4-hour chart, ADA/USD is bearish. Cardano price is moving up to touch the resistance level at $0.11 but the bears defend the level. Likewise, the price tests the support level of $0.10; the level is equally defended by the bulls. The ranging movement continues until there is a breakout at $0.11 or $0.10 levels.   

ADA 4 hour chart, October 27

However, there is a formation of a bullish candle pattern called Pin bar at a support level of $0.10 on October 26; this indicates that the bulls may take over soon. The Relative Strength Index period 14 with its signal line at 40 levels pointing up to indicate a buy signal. 

 

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
Share with other traders!

Author : Azeez Mustapha

Avatar

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