Cardano (ADA) – Built the foundation for a new bearish wave

Cardano (ADA) – Built the foundation for a new bearish wave

Posted on Thursday, December 29 2022 at 8:40 pm GMT+0000

Cardano (ADA) built the foundation for a new bearish wave after the recent dive below the 0.247 support level, which triggered last week’s rebound.

The bearishly aligned Ichimoku lines are endorsing the prevailing downward forces while the technical indicators are raising the stakes for additional declines in the coming sessions. Both the Awesome Oscillator and the KST are diving below their neutral marks while the -DI and +DI lines of the ADX indicator are negatively charged with the ADX itself climbing above 20 hinting at a strong downtrend.

Sellers became more confident that the descent will continue, following the recent drop below the 0.247 support. Those are now expected to target the 161.8% Fibonacci extension level of the last up-leg at 0.235. Lower, negative pressures will amplify further leading the price towards the 261.8% Fibonacci level at 0.216.

However, following any sudden improvement in sentiment, buyers could get congested once again around the nearby Ichimoku lines. If those give way, the famous coin could jump above the cloud to challenge the December 27th high of 0.266. In the event that profound positive pressures endure above the latter, the bulls could then seek out the December 18th top of 0.272.

In brief, Cardano dipped below a key support barrier and is expected to surrender extra ground, with bears turning their attention initially to the Fibonacci golden number at 0.235.