ADAUSD - Cardano Short-term BEARISHHi guys, i put out an analysis on ADA 4 days ago, wanted to update my analysis with whats developing in the charts as we speak.
Lets jump right in with PRICE ACTION ( on daily timeframe)
We are currently in the process of breaking this short-term support line #3. Though we have not yet closed below, todays candle which is a relatively large bearish candle with upper wick indicates bearish activity. Lets see what happens end of day.
We are also below #4 line, horizontal resistance line that played major resistance. Important to watch how ADA reacts with this line as well. The temporary move above could of been a fakeout and we may need a bit more time to get above.
I believe lines # 3 and 4 will be hard to get over. But keep an eye, If this down trend is a fake out. But this scenario is less probably with how our indicators are overbought.
I am watching the green horizontal support line without a #. I believe price action to test this level first. But my major area i am watching is line#2 and purple line (200 day moving average) converge. This in my opinion is some major support. We have to see how price action reacts here.
I think this move is the move i was expecting from the BEARISH DIVERGENCE.
From that, we should look at our indicators and how the move.
RSI - We've come down below the yellow moving average. Usually when we are below the yellow line, we are dwn for some time. Watch to see which level it starts creating support.
MACD - This is a momentum indicator i use. A cross of blue line below orange is a bearish indicator. Also the histograms when they turn red is a bearish indicator as well. We are currently in the process of a bearish cross with red print. We need to watch this.
CONCLUSION: I believe ADA to be moving downwards from the pressure of the Daily BEARISH DIVERGENCE. With indicators showing bearish signs i believe this downward correction to be here for atleast the next couple of days if not a few weeks at most. This is not a bad thing. Overall trend of ADA however is bullish after confirming a breakout of MAJOR DOWNTREND RESISTANCE from all time highs of $3.00. (Look to the chart i posted below for more info).
Thanks for tuning in! If you liked this analysis. Please boost and follow! Comment below on your opinions of what you think and let me know if you agree or disagree.
I will be continuing to UPDATE about cardano, cryptos and more. Keep an eye out!
DISCLAIMER: This is not in anyway financial advise. I am not a financial advisor. EVerything expressed in my posts are my opinion and for educational purpose. Thanks
