Cardano (ADA) – Sellers dominatePosted on Sunday, December 12 2021 at 9:36 pm GMT+0000
Cardano (ADA) has been trending downwards since early September, failing to post any notable correction throughout this whole period. The negatively intersected simple moving averages are nurturing the bearish structure.
Furthermore, the oscillators are skewed to the downside, prompting further negative price action. The momentum oscillator is diving in the negative waters and the IMI shifted back southwards after a failed attempt to exit the negative zone.
Should sellers manage to stay in control and secure a daily close below the current low of 1.192, they may target the congested area around the 1.000 psychological number linked to raft of lows posted between March and July, and the nearby 261.8% Fibonacci extension level of the 1.842-2.391 up-leg at 0.953.
If buyers regroup and manage to steer the price higher, preliminary resistance could emanate from the 161.8% Fibonacci level at 1.502 and the adjacent 20-day simple moving average. Successfully extending above it, upside progress may be challenged by the 1.953-1.842 resistance barricade created by the 50-day simple moving average and the October 27th low. Beyond that, focus would turn towards the 100-day simple moving average around 2.045 and the 2.391 inside swing high.