Cardano (ADA) – In the process of extending the negative structurePosted on Tuesday, January 4 2022 at 10:04 pm GMT+0000
Cardano (ADA) sellers seems in the process of extending the more than 3-month-old negative structure of successive lower highs and lows. Furthermore, the falling simple moving averages are also suggesting that the descent remains sturdy.
Oscillators, on the other side, are implying that negative momentum is gaining power again as the IMI shifted south and is approaching its neutral level, and the momentum indicator is steering deeper beneath the zero threshold. The stochastic oscillator is also maintaining a strong negative charge promoting further price declines.
Traders will keep a close eye on the December 17th swing low of 1.18, a decisive break of which will confirm the aforementioned negative scenario paving the way towards the Fibonacci golden number of the last up-leg at 0.95. Diving past that, sellers will push towards the 227.2% Fibonacci extension at 0.67.
Otherwise, if bulls manage to regroup, they will slide the 50-day simple moving average currently seen around 1.47 and call for a fresh test of the most recent high of 1.60. A sustained move above that barrier, will shift the bias to positive and will initially reach the December 2nd high of 1.77, near which the 100-day simple moving average resides.
Overall, Cardano is exhibiting a clear bearish picture on the daily chart, and an extension beneath the 1.18 low is the most likely scenario at the time being. For sentiment to change, buyers will need to overshoot the 1.60 obstacle.