By Franklin Smith
Cardano’s latest upward channel trajectory witnessed an anticipated bearish break within the past few days. Failure to maintain the crucial $0.53 mark catalyzed a plunge beneath the token’s southbound 20-50 Exponential Moving Average.
Bulls might aim to restrict the pessimistic volatile break as ADA’s price neared the Bollinger Bands’ lower band. While publishing this post, ADA traded at $0.4639, following a 1.41% uptick over the past day. However, bearish tendencies remain visible in the space.
Cardano Daily Timeframe
The previous setup’s breakout welcomed a sharp upward channel revival on Cardano’s daily chart. Moreover, the price kept hitting the upside channel’s bottom trend line several times for fourteen days before escaping the pattern.
The following breakdown breached the token’s squeeze phase, revealing a bearish superiority. A decisive closing beyond the $0.47 mark might support the altcoin to retest the BB’s basis line in the upcoming sessions. Nevertheless, the latest sell volumes surpassed buy orders.
So, the current candle should secure a massive closing beyond the immediate resistance to authorizing short-term trend reversal chances. Nevertheless, the bearish cross on the 20-50 Exponential Moving Average supports bearishness in the coming trends. A plausible closing beneath $0.44 would authorize a sell sign.
Reasoning
The RSI (Relative Strength Index) adopted visible bearishness while securing support around the 35 mark. Sustained actions beneath the equilibrium might bolster sellers to dominate immediate trends.
Moreover, the CMF (Chaikin Money Flow) echoed sellers, following a sharp plunge from the zero-mark. Also, the Moving Average Convergence Divergence dipped beneath zero after one month.
Final Thought
Considering the upward channel bearish break, the position beneath the short-term Exponential Moving Averages, plus the indicators, ADA exhibits a bearish superiority.
Cardano buyers might trigger a compression phase as they maintain the support level at $0.44. Nevertheless, investors should watch Bitcoin’s actions and the impact on overall markets for profitable undertakings.
Bitcoin battled bearishness during this publication. The bellwether crypto hovers at $21,317.05 and seems to contemplate upcoming trends. It remains crucial to see how coming market trends will define the marketplace.
We have more cryptocurrency updates coming your way. Stay tuned.