Cardano (ADA) To Continue South

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Cardano Technical Analysis and Charts

Cardano (ADA)

”Cardano

Above: Cardano (ADAUSD)

The Wednesday trade session led many current and new entrants to believe that a reversal in the current trend of the cryptocurrency market was coming. That belief was furthered by the first four hours of the Thursday trading session. The cryptocurrency market has now entered into a ‘make-or-break’ moment where cryptocurrencies like Cardano will either continue the slide south or pull off a major surprise and spike higher.

Cardano’s daily chart above shows how persistent some buyers are in their attempts to push Cardano higher. No doubt, if any of those buyers are holding bags, especially if they are Ichimoku traders, they feel very nervous. Wednesday was the second consecutive daily close below the Cloud. When you look at the shadow/wick on the Wednesday candle, you can see that sellers were firm in keeping Cardano below the Cloud. Then, traders attempted to rally Cardano higher on the Thursday open by pushing back into the Cloud and making a higher high (above Wednesday’s high).

I’ve shifted the Relative Strength Index into bear market territory. That means the oversold conditions move from 40 and 50 to 20 and 30. Cardano has been trading right on top of the 40 levels in the Relative Strength Index for roughly four days. The Composite Index is relatively neutral, showing some evidence of flattening out. The fast and slow-moving averages within the Composite Index are right on top of one another. Finally, the %B remains in a condition where it oscillates and ping-pongs above and below the 0.2 level.

There is some evidence that Cardano could be positioning for a bullish breakout. The conditions I see in the Relative Strength Index, Composite Index, and %B would support a move on Cardano’s chart that would sustain a bullish move. However, the current resistance levels in the Ichimoku system are likely to prevent any movement from being sustained higher. Traders will likely have to wait until October 5th or 6th, when the Chikou Span will be in a position to move above the candlesticks more easily. Presently, to confirm an undeniable bullish expansion phase, buyers need to push Cardano to $3.00 and then close at or above that mark. Starting on October 5th, that threshold drops from $3.00 to $2.60. At that point, the current close and the Chikou Span will both be above the Cloud with the Chikou Span above the candlesticks creating one of the most sought after bullish breakout setups in the Ichimoku system. New all-time highs would be just around the corner in that scenario.

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