ADAUSD stuck within tight trading range
Cardano/US Dollar Index (ADAUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
ADAUSD finished Saturday at 0.1061 gaining $0.0018 (1.73%) on low volume. 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 Oct 17, 2020):
Saturday's trading range has been $0.0038 (3.64%), that's far below the last trading month's daily average range of $0.0063. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ADAUSD. Prices continued to consolidate within a tight trading range between 0.1024 and 0.1078 where it has been caught now for the last three trading days.
Prices are trading close to the key technical support level at 0.1031 (S1). ADA/USD ran into sellers again today around 0.1073 for the third trading day in a row after having found sellers at 0.1073 in the previous session and at 0.1078 two days ago. The last time this happened on September 24th, ADAUSD actually gained 17.29% on the following trading day.
While the cryptocurrency is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Selling might speed up should prices move below the nearby swing low at 0.1024 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for ADA/USD. Out of 87 times, ADAUSD closed higher 51.72% 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 62.07% with an average market move of 3.15%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more