ADABTC breaks above 50-day moving average for the first time since October 19th
Cardano/Bitcoin Index (ADABTC) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ADABTC ended Sunday at 0.00000792 surging BTC0.00000077 (10.77%) on high volume. Today's close at 0.00000792 marks the highest recorded closing price since October 25th. Trading up to BTC0.00000058 lower after the open, ADA managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Saturday's high at 0.00000718, ADA/BTC confirmed its breakout through the prior session high after trading up to BTC0.00000107 above it intraday.
Daily Candlestick Chart (ADABTC as at Nov 22, 2020):
Sunday's trading range has been BTC0.00000168 (23.5%), that's far above the last trading month's daily average range of BTC0.00000048. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ADABTC.
Cardano managed to close above the 50-day moving average at 0.00000774 for the first time since October 19th. Unable to break through the key technical resistance level at 0.00000810 (R1), the cryptocurrency closed below it after spiking up to 0.00000825 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on October 29th, ADABTC lost -2.82% on the following trading day.
Crossing above the upper Bollinger Band for the first time since July 26th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 0.00000662 or signal the beginning of a strong momentum breakout leading to even higher prices.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for ADA/BTC. Out of 90 times, ADABTC closed lower 57.78% of the time on the next trading day after the market condition occurred.