Cardano (ADA) Daily Prices Seem Bearish; May Move Towards Key Support
ADA prices are trading just above the critical support; daily prices are bearish and may move downwards further. If ADA holds its ground around this support area, then it may be a good time to add ADA into the Blue-Chip crypto portfolio.
Cardano Price Analysis
Weekly prices are hovering around the support at $0.0279. Prices are currently trading below the 9 days SMA (Simple Moving Average) shown by the blue line, and it is also touching the lower Bollinger Band and might try to return to the mean average at $0.0417. For complete reversal, it needs to break the upper Bollinger band at $0.0517 and convert it into a support area.
Daily prices are rejected by the 21 days SMA, and 49 days SMA denoted by the white line and green line, respectively. Daily prices couldn‘t holds its support at $0.036 denoted by the orange straight line, as shown in the below chart. Prices are also rejected by the trend line denoted by the red dotted line in the below-given graph. If it gets rejected again, ADA prices will go towards the weekly support of $0.0279 denoted by the white straight line. RSI is at 42.10 which is neutral, Stoch RSI is showing the prices are at the overbought area and indicating a decline in price.
Laying Ichimoku Kinko Hyo system over the 1 D chart, the following things can be observed:
- ADA prices tried to break out of the Kumo during 6th and 18th Nov 2019, but it failed to do so, and as a result, it is trading below the Kumo; outlook is bearish.
- Prices are supported by the Tenkan Sen (blue line), and the next resistance is at $0.0353 represented by the Kijun Sen (red line) which is close to the previous support now acting as resistance (orange straight line at $0.036).
- Chikou Span is below the price candles and Kumo; bearish.
Conclusion: Daily prices are bearish, and it will go towards the weekly support at $0.0279 as it is rejected by the trendline and it has also lost its support at $0.036. Till daily ADA prices reclaim its support (S/R flip) at $0.036, the outlook is bearish.
