ADA|USD Key Weekly Support| Double Bottom| Lower Highs

Hello Traders!

Today’s update will be on ADAUSD, testing a critical level as it comes close to its apex, a move is imminent.

Points to consider,
- Bearish Trend
- Major weekly support being tested
- Local resistance to break
- Stochastics in lower regions
- RSI respecting trend line
- Volume declining
- EMA’s giving price resistance

ADAUSD has been in an establish bear trend with consecutive lower highs; it is testing a critical weekly support area that must hold as the lower high structure converges.

If weekly support holds true, ADAUSD will confirm a double bottom, which is a major reversal pattern. Local resistance will be the first target to break as this will put in a new higher high in the trend, confirming a trend change.

The stochastics is currently in lower regions, can stay here for an extended period of time, however lots of stored momentum to the upside. RSI is respecting its trend line, must hold for a bullish bias, a break will likely also mean a break in weekly support, which will be very bearish.

Volume is declining rapidly, signalling that a move is imminent as price comes closer to its apex. EMA’s itself is currently giving price resistance, a bullish cross will help negate the bearish trend.

Overall, in my opinion, this weekly support is probable to hold, ADAUSD is likely to break bullish from its apex, and an entry would only be valid if ADAUSD breaks local resistance with a bullish retest.

What are your thoughts?

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And remember,

“If you can’t take a small loss, sooner or later you will take the mother of all losses.” – Ed Seykota