Cardano (ADA) – Exhibiting a sturdy bearish bias below the exponential moving averagesPosted on Sunday, May 1 2022 at 9:08 pm GMT+0000
Cardano (ADA) has taken notable heavy damage during April and stretched the medium-term downtrend initiated from September’s peak to levels last seen in February 2021. Moreover, the persistent negative bearing in the 55- and 100-day exponential moving averages is nurturing the prevailing bearish structure.
However, the price lately steadied around the February 24th bottom at 0.746 after plummeting to a fresh 15-month low during the weekend. The RSI and stochastic oscillators both reversed higher, with the %k line of the latter nudging past the 80 oversold threshold, while the Awesome Oscillator remains deep in the negative territory underlining the ongoing bearish risks in the medium-term.
If Sunday’s bounce gathers additional steam, overstepping the region around the 50% Fibonacci level of the February-March up-leg near the 1.000 key level, encapsulating the exponential moving averages and the March 1st inside swing high, could be a very tough task for the bulls to achieve. By successfully clearing these barricades, they will catapult the price towards the March 28th high at 1.247, aiming to upgrade the medium-term technical picture to positive beyond that bar.
However, a resumption of the selloff is more than likely at this point, and should the price drop below Saturday’s low at 0.737, the decline will extend to the 0.600 round number and the 161.8% Fibonacci extension level at 0.436 intersecting with the descending trendline stretched from September’s peak.
To sum up, Cardano is exhibiting a sturdy bearish bias below the exponential moving averages, having generated a strong structure of lower tops and lower bottoms since September, and a dive in price below 0.737 will power the bearish outlook. Only a climb beyond 1.000 will ease the negative pressures.