Cardano / TetherUSUpdated ADA/USD - 2.00 rally or risk of drop to 1.55, next 48 hours key
Hello friends!
Yesterday ADA had a nice rally up to 1.83 before falling back to the 1.70's. Despite downward momentum, ADA held on to the 1.70 level with all its might. This showed strength, but also limited pressure to move higher.
Prices stayed above the critical 1.55 level for the day yesterday, reducing the chances of a consolidation in the next 5-7 days, but holding 1.70 may not be enough to avoid it.
Today shows an interesting mix of indicators. Prices could easily rally to 2.00 with enough upward pressure, but could also exhaust and allow prices to test 1.70 and possibly break down to 1.55 (even if temporarily).
ADA will be at a junction for the next 48 hours that will either see prices rally above 2.00 or another consolidation to test 1.55.
Intraday/Daily
Summary: Rally to 2.00 possible, but overall weakness and 6H downward momentum could keep prices sideways or break down towards 1.55.
3h - Day starts with green EMA well above white EMA, which is still at level 50. RSI and LSMA are diverging. Prices could rally above 1.80, but upward momentum is quite low, limiting upside.
6H - Contrary to the 3H, the 6H has green EMA continuing to fall towards level 50 while white EMA is already below 50. RSI and LSMA remain flat. If prices break higher, green EMA could bounce near level 50, otherwise there is risk that it would close below level 50 leading to a drop to near the yellow basis (around 1.55)
12H - RSI and green EMA are rising, while white is at a high level and starting to descend. Often this pattern suggests sustained upward momentum and higher prices to come. Prices remain lower than typically seen in this pattern and Bollinger bands are narrow and narrowing as LSMA nears level 50. Prices could easily rally to 1.85 or even 2.00 (upper white and aqua B-bands) with sufficient upward momentum, however, the low prices suggest that upward momentum is weak, allowing for prices to fall or focus around the 1.70 support level.
1D - Generally with the green EMA at nearly 80 and white EMA also high, prices are around the upper white B-band when LSMA and RSI are near level 50. Currently this is not the case. This could mean a rally to 2.00 is imminent or that upward momentum is weak and a consolidation is near.
Multiday (next 4 days)
Summary: 1.70 to 1.85 in the next 2 days, but 4D and 5D on edge of rally or consolidate
2D (new) - On the momentum of yesterday's rally, green EMA has crossed above level 50 and the RSI indicating a turn to upward momentum. Prices could rally again to the upper white B-band (1.86) or a bit higher, but a leg up is not likely given how narrow the B-bands are, white EMA below level 50, and LSMA and RSI still falling. 1.70 looks to be the key support level.
4D (2 days left) - Despite the rally, RSI, LSMA, and green EMA are still trending down. Green EMA at level 50. Another rally could cause green EMA to turn flat or up. If this does not happen in the next 48 hours, prices would be likely to return to the 1.44 level in the next candle. Currently there is nothing to indicate a rally will happen in the rest of this candle, though it is possible.
5D (4 days left) - Very similar to the 4D, though the LSMA is dropping faster and white EMA is further below level 50 showing stronger downward momentum. A close at these levels would likely return prices to the 1.40 region in the following candle. Also like the 4D, there could be a bounce where green does not close below level 50 if a rally were to occur in the next three days.
Good luck and good fortune!
Yesterday ADA had a nice rally up to 1.83 before falling back to the 1.70's. Despite downward momentum, ADA held on to the 1.70 level with all its might. This showed strength, but also limited pressure to move higher.
Prices stayed above the critical 1.55 level for the day yesterday, reducing the chances of a consolidation in the next 5-7 days, but holding 1.70 may not be enough to avoid it.
Today shows an interesting mix of indicators. Prices could easily rally to 2.00 with enough upward pressure, but could also exhaust and allow prices to test 1.70 and possibly break down to 1.55 (even if temporarily).
ADA will be at a junction for the next 48 hours that will either see prices rally above 2.00 or another consolidation to test 1.55.
Intraday/Daily
Summary: Rally to 2.00 possible, but overall weakness and 6H downward momentum could keep prices sideways or break down towards 1.55.
3h - Day starts with green EMA well above white EMA, which is still at level 50. RSI and LSMA are diverging. Prices could rally above 1.80, but upward momentum is quite low, limiting upside.
6H - Contrary to the 3H, the 6H has green EMA continuing to fall towards level 50 while white EMA is already below 50. RSI and LSMA remain flat. If prices break higher, green EMA could bounce near level 50, otherwise there is risk that it would close below level 50 leading to a drop to near the yellow basis (around 1.55)
12H - RSI and green EMA are rising, while white is at a high level and starting to descend. Often this pattern suggests sustained upward momentum and higher prices to come. Prices remain lower than typically seen in this pattern and Bollinger bands are narrow and narrowing as LSMA nears level 50. Prices could easily rally to 1.85 or even 2.00 (upper white and aqua B-bands) with sufficient upward momentum, however, the low prices suggest that upward momentum is weak, allowing for prices to fall or focus around the 1.70 support level.
1D - Generally with the green EMA at nearly 80 and white EMA also high, prices are around the upper white B-band when LSMA and RSI are near level 50. Currently this is not the case. This could mean a rally to 2.00 is imminent or that upward momentum is weak and a consolidation is near.
Multiday (next 4 days)
Summary: 1.70 to 1.85 in the next 2 days, but 4D and 5D on edge of rally or consolidate
2D (new) - On the momentum of yesterday's rally, green EMA has crossed above level 50 and the RSI indicating a turn to upward momentum. Prices could rally again to the upper white B-band (1.86) or a bit higher, but a leg up is not likely given how narrow the B-bands are, white EMA below level 50, and LSMA and RSI still falling. 1.70 looks to be the key support level.
4D (2 days left) - Despite the rally, RSI, LSMA, and green EMA are still trending down. Green EMA at level 50. Another rally could cause green EMA to turn flat or up. If this does not happen in the next 48 hours, prices would be likely to return to the 1.44 level in the next candle. Currently there is nothing to indicate a rally will happen in the rest of this candle, though it is possible.
5D (4 days left) - Very similar to the 4D, though the LSMA is dropping faster and white EMA is further below level 50 showing stronger downward momentum. A close at these levels would likely return prices to the 1.40 region in the following candle. Also like the 4D, there could be a bounce where green does not close below level 50 if a rally were to occur in the next three days.
Good luck and good fortune!
Note
Update on Tomorrow's Options Expiration: Max pain for May 28 expirations is 50k, while May 29 expirations (much smaller) is 41k. Often (not always) prices will move towards max pain, which would mean that BTC could rally tomorrow.A 25% rally from 40k to 50k appears unlikely, but not impossible. A rally of some sort does seem plausible.
The key question is whether a BTC lifts the broader crypto market or draws capital away from altcoins. This is not clear.
Finally, it looks like the options are modest at 1.9B - much lower than 6.5B of other expirations. Thus, the price action may be limited.
A BTC rally that lifts ADA could lead to ADA testing 2.00 and further reducing the chances of consolidation in coming days. It is best to prepared for a rally but also know that tomorrow's BTC price action is unclear.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.