Cardano (ADA) attempted to create several higher lows and a bullish structure after its May 12 bottom. However, it failed to do so and is in the process of breaking down.
ADA has been falling since reaching an all-time high price of $3.10 on Sept 2. The downward movement has been swift and so far led to a low of $0.40 on May 12. Throughout the decrease, the price broke down from an ascending support line, which had previously been in place for 679 days.
Эгерде төмөндөө кыймылы улана берсе, эң жакын колдоо аймагы 0.36 долларды түзөт. Бул маанилүү горизонталдуу колдоо деңгээли, анткени ал 2018-жылдын май айында каршылык катары, андан кийин 2020-жылдын ноябрында колдоо катары иштеген.
Measuring from the high, the price has decreased by 86%.
Апта сайын RSI is very close to its oversold territory, it has not reached it yet nor has it generated any bullish divergence.
Potential breakdown
Cryptocurrency соодагери @CryptoBullet1 tweeted a chart of ADA, stating that the price has tested the $0.44 area eight times, so it could break down from it.
The daily chart does provide a bearish outlook from two main reasons.
Firstly, the RSI has broken down from its bullish divergence trend line (green line). Also, it was rejected by the 50 line (red icon), adding to the bearishness.
Secondly, the price has reached a daily close below the $0.445 horizontal support area.
As a result of these readings, a breakdown and continued descent would be the most likely scenario.
Future ADA movement
When measuring the most recent portion of the upward movement, the two most likely levels for a bottom to be reached are at $0.32 and $0.23. They are the 1.27 and 1.61 external Fib retracement resistance levels, respectively.
Since the former also coincides with the long-term support area outlined in the first section, it is likely to provide strong support.
Be[in]Crypto'нун акыркы биткоин (BTC) анализи үчүн, чыкылдатуу бул жерде.
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Source: https://beincrypto.com/cardano-ada-breaks-down-below-60-day-horizontal-support-area/