Cardano (ADA) Further south

Cardano (ADA)

Above: Cardano (ADAUSD)

Wednesday’s trading session made many current and new entrants believe that a reversal in the current trend in the cryptocurrency market is imminent. That belief was reinforced by the first four hours of Thursday’s trading session. The cryptocurrency market has now entered a “make-or-break” moment where cryptocurrencies like Cardano either continue the decline south or create a big surprise and climb to the top.

Cardano’s daily chart above shows how tenacious some buyers are in their attempts to push Cardano up. No doubt if any of these buyers are holding bags, especially if they are Ichimoku dealers, they are very nervous. Wednesday was the second day in a row under the cloud. If you look at the shadow / wick on the Wednesday candle, you can see that the vendors were holding Cardano tightly under the cloud. Then traders tried to rebound Cardano on Thursday by pushing back into the cloud and hitting a higher high (above Wednesday’s high).

I moved the Relative Strength Index into the bear market area. This means that the oversold conditions are moving from 40 and 50 to 20 and 30. Cardano has been trading right at the top of the 40 levels in the Relative Strength Index for about four days. The composite index is relatively neutral and is showing some signs of flattening. The fast and slow moving averages within the composite index are directly above each other. Eventually the% B remains in a state of oscillating and ping-pongs above and below the 0.2 level.

There is some evidence that Cardano could position itself 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, current resistance levels in the Ichimoku system will likely prevent any upward movement from being sustained. Traders will likely have to wait until October 5th or 6th when the chikou span will be able to move more easily across the candles. Currently, to confirm an undeniable bullish expansion phase, buyers will need to push Cardano down to $ 3.00 and then close at or above that level. Starting October 5, this threshold will decrease from $ 3.00 to $ 2.60. At this point, both the current close and chikou range will be above the cloud, with the chikou range above the candlesticks, resulting in one of the most desirable bullish breakout setups in the Ichimoku system. New all-time highs would be just around the corner in this scenario.

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