ZB Market Daily: ADA & LTC technical daily analysis
ADA price extended its rally on Tuesday by 11.93% following on Monday gain of 16.88% which caused ADA price to spike to the upper part of bullish channel at an intraday high of $0.197318 at the closed of the trading session.
Yesterday, it was a bullish opened of the trading session of ADA. ADA started the trading session with an opened price of $0.1760 with an intraday low of $0.1732.
Prior to yesterday trading, on the 28th of December, the crypto bulls broke 25-days heavy resistance at $0.1689 which has prevented the crypto asset for climbing higher to print a new high. ADA price closed the session above $0.1689 to print a high of $0.1737.
During the early hours of the Asian trading session, ADA price wicked down to retest $0.1689. Traders leveraged on the broken resistance to long their position which caused a spike of 11.93% gain at $0.1971.
ADA price got retracement at the upper channel as traders booked for profit. ADA price has historical price rejection level at $0.1971 on the 18th of July 2018. This psychological level was the reason traders liquidated their long position.
From market indicators, the money flow index was uptick at 84.15 index. Demand for the underlying crypto asset got decreased due to lack of inflow of transaction as price action reached the supply zone. The 20-period simple moving average acted as dynamic support. The bullish divergence of the Bollinger bands indicated that the crypto bulls have upper hand.
The crypto bulls created a minor support at the close of the trading session as they steered at $0.1971 resistance.
For the day ahead, we could expect a break of this minor support for probable higher lows market structure to be created for a healthy uptrend at $0.1738. On the contrary, if the bulls can break above the wicks at $0.1971 resistance, we could see a rally up to a high of $0.24 in the near term.
LTC price declined on Tuesday by 8.09% following on Monday’s loss of 7.29% after it printed a high of $137.45 at the close of the trading session on 28th December.
Yesterday, LTC price was bearish opened of the trading session. During the early hours of the Asian trading session, LTC price fell to a low of $125.691 without a range wick to the bottom, this implied that the crypto bears exhausted their volume to pushed LTC price lower. Irrespective of this, LTC price wicked down to retest previous $122.651 resistance which became a support at 12:00 UTC.
LTC price made a chopping market structure as shown on the 4-chart below.
From the chart above, LTC made a double top market formation in previous sessions at $137.062. More so, based on price action, LTC price rejected the upper part of a bullish channel after a healthy rally on the 25th of December. This created a bearish signal for the correction of the rally.
From market indicators, the ichimoku cloud Conversion line crosses above the base line.
Both these two lines are above the cloud.
This indicates a potential buy signal in the near term .
RSI down sloped from the over-bought territory to the neutral territory.
The Relative Strength Index was seen floating near the neutral zone due to rejection of the $122.904 price level.
These scenerio reflected the fact that buying and selling pressure are in equilibrium.For the day ahead, for the crypto bulls to maintain the bullish channel, the bulls must defend $122.904 support and break above $137.062 to print a high of $161.681 as long position target in the near term. But if the crypto bears lower LTC price down due to the double top market structure, crypto bulls must defend the lower part of the channel at $118.032 to resume the uptrend.
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