Cardano (ADA) – Readopted negative note below the channel

Cardano (ADA) – Readopted negative note below the channel

Posted on Thursday, June 16 2022 at 9:29 pm GMT+0000

Cardano (ADA) kicked off Thursday with a negative note, after the recent recovery attempt fell apart around the 20-day exponential moving average and the tough lower-line of the ascending channel stretched from the May 12th low.

The falling 20- and 55-day exponential moving averages are sponsoring the broad bearish outlook while signals from the oscillators are still evidently discouraging. The momentum indicator is diving in the negative territory and the RSI turned lower below its 50-neutral mark.

The price is looking to re-test a familiar support zone around the 0.44 bottom, which motivated the late May rebound. Should this strong base fail to mute negative forces this time, the bears will dip straight to the 12th of May low at 0.39. A significant violation here will trigger a more aggressive decline towards the 22nd of January 2021 low at 0.28.

Otherwise, if the aforementioned support barrier proves once again strong enough for an upside reversal, bulls will need to generate sufficient traction to overshoot the lower-line of the channel fortified by the 20-day exponential moving average. However, not too much higher, the 55-day exponential moving average and the 31st of May high at 0.69 would act as strong resistance barricades, ahead of the channel upper line and the 0.74-0.78 congested area. Further hikes in price will bolster upside momentum towards the 1st of March high around the 1.00 psychological number.

To summarize, Cardano will likely keep attracting selling interest in the coming sessions, especially if it drops below 0.44. Only a remarkable jump beyond the 20-day exponential moving averages could inject some optimism for a relief rally, while a move beyond 0.69 will introduce a major positive upgrade to the medium-term outlook.