Cardano Price Key Highlights
- Cardano price continues to trend lower as it moves inside a descending channel on the 4-hour time frame.
- Price is also trading below a short-term descending trend line to reflect a steeper slide.
- If this trend line continues to hold, Cardano price could fall below the larger channel support.
Cardano is trending lower and might be due for a downside break of the nearby support zone.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse.
Also, the gap between the moving averages is widening to signal stronger bearish momentum. The top of the descending channel is right in between the moving averages’ dynamic inflection points so either could also keep gains in check from 0.1600 to 0.1800.
RSI is pulling up from oversold conditions, though, so buyers could be ready to push Cardano back up. Similarly stochastic is pointing up to signal that buyers are regaining the upper hand. Once both oscillators hit overbought levels and turn back down, sellers could return.
The short-term descending trend line connecting the latest highs so far this month is also in line with the mid-channel area of interest to add to its strength as resistance. A break below the channel bottom at 0.1200 could lead to a steeper drop.
There haven’t been much catalysts particular to Cardano these days, leaving the digital asset sensitive to overall industry sentiment. The previous week wasn’t such a a positive one as bounces couldn’t be sustained on news of security incidents.
Still, Cardano founder Charles Hoskinson believes that the introduction of crypto to Wall Street could bring tens of trillions of dollars, even after Japan’s financial regulators ordered several cryptocurrency exchanges to improve on their practices against money laundering late last week.
Cardano image via Shutterstock.