ADABTC closes lower for the 2nd day in a row
Cardano/Bitcoin Index (ADABTC) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ADABTC finished Saturday at 0.00001222 losing BTC0.00000004 (-0.33%). Today's close at 0.00001222 marks the lowest recorded closing price since July 6th. Trading BTC0.00000033 higher after the open, the cryptocurrency was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ADABTC as at Aug 01, 2020):
Saturday's trading range has been BTC0.00000080 (6.53%), that's slightly below the last trading month's daily average range of BTC0.00000103. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ADABTC.
Two candlestick patterns are matching today's price action, the Southern Doji which is known as bullish pattern and one neutral pattern, the Doji. The last time a Southern Doji showed up on June 16th, ADABTC gained 6.14% on the following trading day.
Prices are trading close to the key technical resistance level at 0.00001303 (R1). After having been unable to move lower than 0.00001189 in the prior session, the market found buyers again around the same price level today at 0.00001179.
Although Cardano is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Southern Doji" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ADA/BTC. Out of 31 times, ADABTC closed lower 51.61% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 64.52% with an average market move of -3.05%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more