Cardano (ADA) – Sellers looking to underpin the medium-term bearish outlookPosted on Monday, December 12 2022 at 8:34 pm GMT+0000
Cardano (ADA) has dipped back beneath the 20-day simple moving average rekindling the dominant bearish tone, after a failed attempt to overstep the tough resistance barricade molded by the 21st of October low and the 12th of December high.
The negatively charged simple moving averages are endorsing the bearish outlook. Moreover, the ROC has slid below the zero-level reflecting the recent increase in the negative impetus.
In other technical indicators, the -DI and +DI lines of the ADX indicator are diverging and bearishly aligned, with the indicator setting the stage for an upturn above 20, promoting the strong medium-term downtrend.
In the meantime, sellers’ eyes are turned towards the last bottom recorded on the 21st of November at 0.295, where any violation will boost the negative pressures sending the price to the 161.8% Fibonacci extension level of the 0.295 – 0.329 bullish wave at 0.274. Further lower, the sell-off will likely pick up speed towards the 261.8% Fibonacci level at 0.240.
Should the bulls retake the wheels, immediate resistance may emanate from the 20-day simple moving average. Stepping above this line the strong resistance barricade at 0.329 will try to curb additional advances. Following a decisive step beyond the latter, the rally will slice through the 50-day moving average and accelerate towards the 2nd of November resistance at 0.380 and the adjacent 100-day moving average. A jump over these barricades will reach the 0.424 – 0.440 zone joining the 29th of August bottom and the 29th of October top respectively.
To summarize, Cardano is exhibiting a sturdy bearish bias below the simple moving averages and a decisive drop below 0.295 will empower the negative outlook. Only a jump over 0.329 could trigger some bullish developments.