ADA-USD 4-hour chart

ADA-USD 4-hour chart

Gate Trade ada Monday, May 11, 2020 358 0

The 4-hour of the ADA/USD pair shows that the price is stuck in a $0.0543484-$0.0461143 range. Though the price dipped below this range, the bulls could not sustain the lower levels. This resulted in a sharp pullback, which shows strong buying on dips.

However, the recovery is facing resistance in the $0.0477515-$0.0489368 zone, which corresponds to 50% and 61.8% Fibonacci retracement levels of the most recent fall.

If the bulls buy the next fall to the $0.0468137-$0.0461143 support zone, it will indicate demand at lower levels. Therefore, traders can buy the bounce off this zone with a target objective of $0.053.

This bullish view will be invalidated if the bears sink and sustain the price below $0.0461143. If that happens, a deeper fall is likely, hence, traders can avoid bottom fishing below this level until a new buy setup forms.