Cardano’s course has been defeated against an important resistance
The price moves along the line of downward resistance.
Technical indicators are giving bearish signals.
The ADA course tried to do bullish breakout of the long-term downward resistance line, but rebounded from it and sank. The technical picture promises Cardano further decline.
Bounce on the long-term chart
Currently ADA rate, cryptocurrencies blockchain Cardano is trading within the $ 0.10 area, which should provide the market support. During growth in May 2019 this area played the role of resistance, but in the end the price still broke through it in July 2020 of the year. During the subsequent reduction of steam, I tested this area for strength in quality support.
Although at first the ADA rate dipped below this area, at the end of the week from September 21 to September 28, a “bullish hammer” was formed on the chart. it is an strong bullish signal, especially if price will be able to gain a foothold over area $ 0.10. IN this case bulls may aim for $ 0.155. Topics time a breakout of support could cause the market to fall to $ 0.07.
Technical indicators are at a crossroads. The RSI is holding directly to district the 50 mark, and the Stochastic Oscillator forms now bearish crossover. Him confirmation will be a clear indication of a bearish trend.
Failed bullish breakout
The ADA rate marked a maximum of $ 0.155 on July 24 and has since moved along lines downward resistance. The price decline continued, until it did not reach a low of $ 0.074 on September 23.
Further currency started to grow, moving along the upward support line (dashed line on the chart). 27th October market came to the crucial level, which is the area of convergence:
- Downward resistance line plotted from July highs
- Upward support line plotted from September lows
- Fibo level 0.5 correction of the entire bearish move
The price bounced from here and then made a bearish breakout of the upward support line.
Technical indicators on the daily chart are giving bearish signals.
MACD and RSI decline, moreover last went under the 50 mark, and the Stochastic Oscillator formed a bearish crossover. All of this has the potential to the market further development of the decline.
ADA chart. Source: TradingView
Cryptocurrency trader @ po1szn shared in Twitter long-term schedule ADA, where the currency falls to $ 0.05, and then makes a vigorous rebound.
Although we cannot predict with certainty the final part of this move (growth), it seems likely that the ADA rate will decline to the $ 0.07 support area highlighted us at the beginning of the analysis.
IN the whole outlook for ADA / USD appears to be bearish.
Read the latest forecast for bitcoin can here.
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