#adausdt
From this updated 4-hour chart of ADA/USDT, we can further analyze the demand and supply zones along with the trend.
Trend Analysis:
1. Current Trend: The asset is still in a downtrend on this 4-hour timeframe, with the price forming lower highs and lower lows.
2. Moving Averages:
The 20 EMA (yellow) and the 50 EMA (purple) are both above the current price, indicating downward pressure.
The price is below the 200 EMA (blue) as well, which confirms the bearish trend on this timeframe.
Demand Zone:
1. Support Level (Demand): A key demand zone is around $0.5191, which aligns with the recent low and appears to be a strong support level.
2. Bounce Potential: If the price revisits this level and buyers step in, we could see a potential bounce. However, a break below this support could lead to further declines.
Supply Zone:
1. Resistance Level (Supply): The area around $0.5539 (near the 20 EMA) could act as a resistance. This aligns with the 20 EMA, where sellers might come in to push the price down.
2. Previous Highs as Supply: The recent peak around $0.6000 can also serve as a strong supply zone, as the price faced significant resistance there before starting the current downtrend.
Additional Indicators:
RSI: The RSI (6) is around 26, indicating oversold conditions on this timeframe. This could mean that a short-term bounce might be possible if buyers gain some control.
Volume: The volume seems to be decreasing, which suggests a lack of strong buying pressure. A strong increase in volume could help confirm any reversal attempts.
Conclusion:
The 4-hour chart confirms a bearish trend with possible demand around $0.5191 and supply around $0.5539. A bounce is possible from the demand zone if buying interest increases, especially since the RSI indicates oversold conditions. However, if the price breaks below the demand zone, further downside is likely. For a trend reversal, the price would need to break and hold above the 50 EMA.
