ADA/USD, H4

On the H4 chart, the instrument is consolidating within the range of 0.5248–0.6256, holding in the area of 0.5527. In addition, "three black crows" and "falling three methods" candlestick analysis patterns have formed, which signal pressure from sellers, which, in turn, is enhanced by the formation of a voluminous "bearish" "marubozu" candle. In the current situation, it is necessary to wait for the price to overcome the upper or lower border of the lateral channel, however, a move to the support level of 0.5248 is more likely, breaking which through will strengthen the negative dynamics to the area of 0.4318–0.3322. An alternative scenario is possible in case of consolidation above the resistance level of 0.6256, then the quotes can recover to the range of 0.7393–0.8691.

ADA/USD, D1

On the D1 chart at the level of 0.6256, there is a construction of "evening star" reversal patterns of candle analysis and a series of "shooting star" patterns, which warn market participants about a possible downward price reversal. In addition, it is possible to highlight the appearance of a "bearish" candle "hanging man" at the level of 0.5752, which has a long lower "shadow" confirming the strength of sellers. In the current situation, it seems more likely that the quotes of the ADA/USD pair will further decrease to the level of 0.5248, overcoming which will open the way for the instrument to the area of 0.4318–0.3322.

Support and resistance

Support levels: 0.5248, 0.4318, 0.3322.

Resistance levels: 0.6256, 0.7393, 0.8691.

Trading tips

Short positions can be opened below the 0.5248 mark with targets at 0.4318, 0.3322. Stop-loss – 0.5752. Implementation period: 9–12 days.

Long positions can be opened above the level of 0.6256 with targets at 0.7393, 0.8691. Stop-loss – 0.5752.