cardanos [ADA] recent decline from the $0.66 level crystallized into a down channel on the daily timeframe. The EMA ribbons coordinated with the 38.2% Fibonacci resistance to curb buying efforts over the past month.

The coin could trigger a favorable selling opportunity if the bears trigger a reversal of the $0.51 mark. At the time of writing, ADA was trading at $0.4995, up nearly 3.25% in the past 24 hours.

ADA daily chart

Source: TradingView, ADA/USDT

As the price action dipped below the EMA ribbons, the direct story for the altcoin took a bearish turn. The oscillation along the channel stopped at the Point of Control (POC, red) which noticed a stiff struggle between the buyers and sellers.

The gains of the past ten days have helped buyers break out of the long-term down channel. Also, ADA saw a rising wedge-like structure approaching 38.2% Fibonacci resistance.

For over 100 days, price action has been struggling to break the upper bound of the EMA ribbons. Any breach above this level would position the alt-to-bag in short-term gains. In this case, the potential targets would be in the USD 0.57 zone.

However, any pullback from the immediate hurdles could extend the squeeze phase in the sessions to come. This trajectory could trigger a reversal towards the $0.45 zone.

rode

Source: TradingView, ADA/USDT

The Relative Strength Index took a bullish stance and aimed for a break above the 56 level. A break above this resistance could support buying pressures in the near term.

Furthermore, the MACD line saw a close above zero and confirmed the ease in selling power. A continued swing above equilibrium could invalidate bearish trends.

The Directional Movement Index (DMI) also confirmed the bullish strength. But ADA’s ADX revealed a significantly weak directional trend.

Conclusion

With the current pattern approaching the 38.2% level and the EMA ribbons, ADA could pose downside risk. The objectives would remain the same as above. A close above $0.515 would negate these bearish tendencies.

Finally, traders/investors should keep a close eye on Bitcoin’s movement and its effects on the broader market in order to make a profitable move.



This post Cardano could break free from bearish shackles – ‘how’ might surprise you

was published first on https://ambcrypto.com/cardano-can-break-away-from-bearish-shackles-how-might-surprise-you/

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