Cardano / TetherUSUpdated ADA/USD - May 16 quick update on pull back
Hello friends!
A quick update on ADA/USDT price action in the short-term - next 4-16 hours.
Looking at the current 6H chart, the green EMA is just at level 50 and RSI has dropped just below level 80. There is still 4.5 hours left in the current candle, but if it closes with the green EMA below level 50, in the following candle it is likely that ADA prices will fall to the 2.00 region.
Currently, it looks unlikely to drop below 2.00 given how high the RSI is and that the green is well above the white EMA.
In the 12H, the green has crossed below the RSI and LSMA, but is still very high at about level 80. If the green EMA in the 12H were to drop to levele 50, ADA could drop below 2.00, but this is currently unlikely as the RSI is above level 80 and 2-3 more candles of downward momentum would be needed. By that time the yellow basis line would likely be above 1.90.
Higher timeframes currently do not suggest any lasting correction, thus this appears to be a small temporary pull back, and opportunity to pick up more ADA if you are looking to buy.
Good luck and good fortune!
A quick update on ADA/USDT price action in the short-term - next 4-16 hours.
Looking at the current 6H chart, the green EMA is just at level 50 and RSI has dropped just below level 80. There is still 4.5 hours left in the current candle, but if it closes with the green EMA below level 50, in the following candle it is likely that ADA prices will fall to the 2.00 region.
Currently, it looks unlikely to drop below 2.00 given how high the RSI is and that the green is well above the white EMA.
In the 12H, the green has crossed below the RSI and LSMA, but is still very high at about level 80. If the green EMA in the 12H were to drop to levele 50, ADA could drop below 2.00, but this is currently unlikely as the RSI is above level 80 and 2-3 more candles of downward momentum would be needed. By that time the yellow basis line would likely be above 1.90.
Higher timeframes currently do not suggest any lasting correction, thus this appears to be a small temporary pull back, and opportunity to pick up more ADA if you are looking to buy.
Good luck and good fortune!
Note
Update: After dropping to 2.00, ADA has bounced up and down. In the new 12H chart, RSI is now below 80 and green EMA is below 50. If this candle closes at/below these levels, then it is likely that prices will go to the area around the yellow basis line in the next 12H candle. It looks like that would be around 1.94. Thus, there is a good chance that there will be another test of 2.00 in the next 12 hours, and possibly a drop as low as 1.84 after that. This is not confirmed until the current 12H candle closes at the end of the trading day. 2.00 is a strong level of support, and might bounce.Note
Note on shorting. ADA is in a strong upward bull run. Entering into short positions (especially margin short) can be quite risky under these conditions. If you choose to short, limit your risk, don't get greedy, and closely watch the indicators in the scalping and short-term timeframes.Note
Update 2: ADA/USDT broke below 2.00, which has now become resistance. Downward price momentum is continuing and may reach the 1.80 region in the next few hours. Currently it does not look like prices will go much lower than that, but the next several hours will determine just how low we can expect prices to go.
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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.