– Tight closes of the daily candlestick bodies with wide ranges between the open and close vex bulls and bears alike.
– Bearish continuation pattern warns of imminent selling pressure if buyers fail to rally Cardano higher.
Cardano (ADAUSD) Ichimoku Kinko Hyo Daily Chart
Above: Cardano (ADAUSD)
Just look at the daily candlesticks on Cardano’s chart. Blegh. That’s all I’ve got to say about it. It seemed as though Senkou Span B would hold as support for Cardano’s price action, but it is current below that level. Yesterday’s close (October 10th, 2021) in particular was quite bearish. The Sunday close occurred below Senkou Span B, the Kijun-Sen and the Tenkan-Sen. But that didn’t stop a significant amount of intraday and overnight attempts to push ADA lower and higher. At the time of writing this article (2000 EST), Cardano closed below the Tenkan-Sen, Kijun-Sen, and Senkou Span B. That means there is considerable weight and bias towards further downside movement.
The final near term support for Cardano is the Lagging Span hitting the bottom of the Cloud at $2.01. We will likely see some short sellers attempt to push ADA below the $2.00 and test lower towards the $1.80 value area. While I don’t like to incorporate a lot of non-cryptocurrency elements into my analysis, I do have to recognize that a substantial amount of professional money has entered the space and that money has exposure in traditional markets. With equity markets on the cusp of a major corrective move, where do you think the professional money will likely liquidate from first? The riskiest investments get cashed out first. For those funds/money, that would mean they abandon their cryptocurrency positions.
As bearish and likely the downside move is, buyers can easily regain the upper hand and push Cardano up and out of the Cloud. A close near $2.65 would fulfill al the necessary conditions required to see Cardano experience a strong and persistent bullish move.