ADAUSD runs into sellers again around 0.0565
Cardano/US Dollar Index (ADAUSD) Technical Analysis Report for May 23, 2020 | by Techniquant Editorial Team
ADAUSD finished Saturday at 0.0550 losing $0.0008 (-1.43%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (ADAUSD as at May 23, 2020):
Saturday's trading range has been $0.0022 (3.94%), that's below the last trading month's daily average range of $0.0035. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ADAUSD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving higher in the prior session, Cardano closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on April 9th, ADAUSD lost -8.29% on the following trading day.
After having been unable to move above 0.0569 in the prior session, ADA/USD ran into sellers again around the same price level today, missing to move higher than 0.0565.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to March's high at 0.0580 we could see further upside momentum if potential buy stops at the level get activated.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for ADA/USD. Out of 17 times, ADAUSD closed higher 70.59% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 35.29% with an average market move of 0.94%.
With five out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -1.16% and LTCUSD closing -0.81% lower. On the flipside the best performers have been ETCUSD closing 1.55% higher and BTCUSD gaining 0.23%. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 10.84% and XVGUSD closing 5.05% higher. The worst performers of the day have been HSRBTC tanking -9.88% and ARDRBTC closing -9.27% lower. Read more