– Tight closing prices of the daily candlestick bodies with wide ranges between the open and close vex bulls and bears alike.
– The bearish continuation pattern warns of impending selling pressure if buyers fail to get Cardano higher.
Cardano (ADAUSD) Ichimoku Kinko Hyo daily chart
Above: Cardano (ADAUSD)
Just look at the daily candlesticks on Cardano’s chart. Bleg. That’s all I have to say about it. It seemed like Senkou Span B would be seen as support for Cardano’s price action, but it is currently below that level. In particular, yesterday’s closing price (October 10, 2021) was pretty bearish. The Sunday closing took place below the Senkou Span B, the Kijun-Sen and the Tenkan-Sen. But that didn’t stop a significant number of intraday and overnight attempts to push the ADA up and down. At the time of this writing (2000 EST), Cardano closed under the Tenkan-Sen, Kijun-Sen and Senkou Span B. That means there is considerable weight and a tendency for further downward movement.
The final short-term support for Cardano is the lagging span, which bottomed out in the cloud at $ 2.01. We will likely see some short sellers attempting to push ADA below the $ 2.00 mark and test down toward the $ 1.80 value area. While I am reluctant to include many non-cryptocurrency-related elements in my analysis, I must acknowledge that a significant amount of professional money has entered the room and that money is exposed in traditional markets. If the stock markets are on the cusp of a major corrective move, where do you think the professional money is likely to be liquidated first? The riskiest investments are paid out first. For these funds / money this would mean giving up their cryptocurrency positions.
With the downside move being bearish and likely, buyers can easily regain the upper hand and push Cardano up and out of the cloud. A closing price near $ 2.65 would have all of the necessary conditions for Cardano to experience a strong and sustained upward move.
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