ADAUSD runs into sellers around 0.1076 for the forth day in a row
Cardano/US Dollar Index (ADAUSD) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ADAUSD finished Sunday at 0.1075 gaining $0.0014 (1.32%) on low volume. Trading up to $0.0008 lower after the open, Cardano managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Saturday's high at 0.1073, ADA/USD confirmed its breakout through the prior session high after trading up to $0.0003 above it intraday.
Daily Candlestick Chart (ADAUSD as at Oct 18, 2020):
Sunday's trading range has been $0.0023 (2.17%), that's far below the last trading month's daily average range of $0.0061. 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.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on October 9th, ADAUSD gained 3.65% on the following trading day.
The cryptocurrency was sold again around 0.1076 after having seen highs at 0.1073, 0.1073 and 0.1078 in the last three trading sessions. Obviously there is something going on at that level.
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.
Buying might accelerate should prices move above the nearby swing high at 0.1140 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 0.1024 where further sell stops could get activated.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ADA/USD. Out of 34 times, ADAUSD closed lower 61.76% of the time on the next trading day after the market condition occurred.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more