ADAUSD closes above its opening price after recovering from early selling pressure
Cardano/US Dollar Index (ADAUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ADAUSD finished Sunday at 0.1460 surging $0.0122 (9.12%) on high volume. Today's close at 0.1460 marks the highest recorded closing price since August 8th. Trading up to $0.0136 lower after the open, ADA/USD managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on November 5th, ADAUSD gained 11.87% on the following trading day. Closing above Saturday's high at 0.1346, ADA confirmed its breakout through the previous session high after trading up to $0.0188 above it intraday.
Daily Candlestick Chart (ADAUSD as at Nov 22, 2020):
Sunday's trading range has been $0.0332 (24.81%), that's far above the last trading month's daily average range of $0.0087. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for ADAUSD.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 0.1081.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 0.1548, upside momentum could accelerate should Cardano be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for ADA/USD. Out of 56 times, ADAUSD closed lower 60.71% 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 58.93% with an average market move of -1.61%.