Cardano (ADA) – Setting the stage for a fresh bearish wave

Cardano (ADA) – Setting the stage for a fresh bearish wave

Posted on Thursday, October 6 2022 at 8:58 pm GMT+0000

Cardano (ADA) is still struggling to overrun the 55-period exponential moving average, which has been curbing recovery attempts since the last week of September.

The technical signals remain obviously discouraging, and the last rebound could not harm the short-term structure of lower tops and lower bottoms. The 20- and 55-period exponential moving averages are still negatively aligned and the oscillators are suggesting that the negative impetus has jump started. The RSI dropped beneath its equilibrium level, and the stochastic reversed sharply from the vicinity of the overbought zone, and plunged to the negative waters.

At the moment, sellers are expected to squeeze the price below the last Wednesday’s intraday low at 0.424 and stage another attack at the 0.416 bottom, which motivated Monday’s rebound. Should this base fail to mute negative forces this time, the price will dip straight to the Fibonacci golden number of the most recent up-leg at 0.403. Further down, the decline will stretch towards the 227.2% Fibonacci extension at 0.389.

Alternatively, if buyers regroup and push over the 20 and 55-period exponential moving averages and beyond the 0.438 high, they could initially get congested near the 23rd of September low at 0.446. Otherwise, they will advance towards the 0.463 top, posted on the 27th of September.

To summarize, Cardano will likely keep attracting selling interest in the coming sessions, but sellers are advised to wait for a drop below 0.424 before raising their exposure in the market. Only an immediate jump over 0.438 could confirm some bullish actions.