Cardano [ADA/USD] Technical Analysis: Bears look to regain control after a 22% hike

Cardano [ADA] recently increased by about 22% and proceeded to see a loss in its price. Technicals reflect that the price is struggling to find the momentum it requires to break out of its sideways movement.

30 minute:

The 20-period exponential moving average is at $0.086, providing a resistance for a future run, as evidenced by the candles bouncing off it.

The Stochastic Momentum Index is below -40, indicating the oversold position of the coin. This can also be interpreted as a bearish sign.

1 hour:

The $0.083 – $0.0888 and $0.092 – $0.091 trend lines are important, as they are moving towards a potential breakout.

The Stochastic is flashing an oversold indicator, with a recovery occurring back above those levels. The %k line is set to crossover below the %d mark.

The Parabolic SAR is flashing bearish signal, with the dots above the candles representing downward momentum.

4 hour:


The combination of 1 Standard Deviation [SD] Bollinger Bands and 2 SD BB shows what is generally interpreted as a bearish signal. This is represented by the price falling below the higher end of the 1 SD band.

The 20-period EXA is shifting its role from being a support to a resistance, as evidenced by the multiple times the price has bounced back from it.

The $0.086 – $0.092 and $0.074 – $0.084 trend lines are forming a channel which is indicative of a breakout to occur soon which could be bearish.

1 day:

The 20 Day Weighted Moving Average is resting at $0.076. This provides a support level for a bear run if one should occur.

The $0.181 to $0.091 trend line is a very important one as it represents a downtrend that has been in power since July. This, along with the $0.068 – $0.083 uptrend, proves to poise the price for a breakout.

The MACD is diverging upwards after crossing below the signal line, which is generally a sign of bearish movement,

The Awesome Oscillator is flashing a Below Zero Line signal which is taken to be a sign of a bear run.

Conclusion:

Even as the coin saw a growth over the past few days, the technicals are indicative of losses yet to come. Expect to see the $0.083, $0.076 and $0.068 lines act as a support for the upcoming bear run.

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