Cardano could see a prolonged rally if losses are held at $ 2.17. Ethereum broke south from a descending triangle and lost a key region of support at $ 3,620. Finally, if it broke below $ 38.5, Polkadot faced a major sell-off.
Volumes on Cardano have decreased in the past 24 hours as buying activity stalled. After an impressive run with ADA gaining 22% weekly, a correction had finally hit the market. An 8% decline led ADA to a newly discovered support zone at $ 2.17. A stronger area of support was between $ 1.82 and $ 1.48 and even clashed with the 20-SMA (blue). This confluence between the moving average and the support areas would cause buyers to reappear should another decline take place.
After the pullback, ADA presented the next target at $ 2.50. That psychological level could be exceeded during the current bull run if buyers reduced losses to $ 2.17. RSI moved south out of the overbought zone but would likely stay in bullish territory above 55. ADX rose north of 32 highlighting a strong trend in the market.
The more price sensitive 4 hour period highlighted certain bearish conditions in the Ethereum market that were hard to miss. A descending triangle breakdown showed losses of 11% from the lower trend line. That trendline also represented a strong defensive point at $ 3,620 and a move south widened the losses to $ 3,200. A green candlestick indicated a bullish reaction and a break above $ 3,620 could trigger a rebound towards $ 3,800.
Lower lows RSI indicated a weakening and confirmed the short-term bearish move by ETH. Ingenious oscillator emphasized profit-taking as selling pressure increased. In the event of further losses, 200-SMA around $ 3,000 could create another defense barrier. Alternatively, there was some interaction between the 20-SMA (blue) and 50-SMA (yellow) at the $ 3,800 level, and the reclaim could trigger another bull run.
The formation of three candlesticks or “three black crows” after an upward trend showed a strong shift in the dynamics for polkadot. The sharp bearish action dragged DOT below several support levels mentioned in an earlier analysis. However, the daily timeframe provided for another buy zone at $ 38.5 – a region that coincided with the 20 SMA and 50 SMA.
A break below this critical point could result in a prolonged sell-off all the way to $ 21.6 and 200 SMA (green). Conversely, a break above the USD 44.5-48 resistance could trigger a price hike. A bearish crossover in Stochastic RSI thwarted chances of a favorable result. Press momentary display A lessening of buying pressure and a move below half the line would be sell signals.
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