Cardano (ADA) – Reinforcing downwards trajectoryPosted on Sunday, November 28 2021 at 10:39 pm GMT+0000
Cardano (ADA) has been trending downwards since early September and has managed lately to distance itself from the Ichimoku cloud amid strengthening negative momentum.
Momentum indicators are endorsing the negative bias, as the MACD is steering deeper beneath its red trigger line in the negative zone. Moreover, the Tenkan- and Kijun-sen lines continue to be negatively aligned further promoting the current bearish trajectory.
Should the bears remain in charge, initial support could arise from the May 29th inside swing low at 1.33. Below that level, the spotlight would turn towards the 1.02 – 0.95 region formed by a raffle of crucial lows posted between May and July.
However, with the RSI hovering below its 30 threshold, and the stochastics pivoting in the oversold zone, upside corrections can’t be ruled out.
Should that scenario materialize, immediate upside constraints could stem from the Tenkan-sen line ahead of the last reaction low of 1.80. Surpassing the Kijun-sen and the cloud would send the price towards the November 9th high of 2.37.