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.
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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.
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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.
