Cardano (ADAUSD) Technical Analysis: Bears Defend Channel Resistance

Cardano looks ready to resume its slide as price is testing the top of the descending channel on the 1-hour chart. In that case, a move to the .020 channel bottom might be in the works.

The moving averages had been oscillating but the 100 SMA seems to have fallen below the 200 SMA once more to signal that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. Price might also test the swing low near the mid-channel area of interest and find some bullish pressure there.

RSI looks ready to move up from the oversold region to signal a return in bullish momentum. In that case, an attempt to bust through the resistance levels at the channel top and moving averages dynamic inflection points could spur a reversal.

Stochastic also made its way out of the oversold region but appears to be turning lower again, indicating a return in selling pressure.

Cardano is part of the group of digital assets pushing crypto adoption in Europe through the “Blockchain for Europe” initiative. This hopes to represent the interests of blockchain companies and businesses throughout the region and also provide education about the “true nature and potential” of blockchain, cryptocurrency and distributed ledger technology.

However, Tron has recently overtaken Cardano as the top tenth cryptocurrency in terms of market cap, so there may be some unwinding for now. Still, many believe that Cardano is poised for quadruple-digit growth as it moves to open several ATMs in Japan and promises real-world applications of the digital currency in the Eastern Pacific region.

Also note that IOHK announced the release of the Cardano testnet with new features for developers and end-users of Daedalus wallet to explore before they are deployed on the mainnet.

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