Cardano Price Analysis – Be Careful With Any ADA Bullish Move Here!

While writing this, ADA’s daily candlestick indicates a massive bearish Japanese candlestick shape. That means a bearish move that engulfs the candlestick. A bearish enveloping/engulfing candlestick is a pattern from two candlesticks in that the current candlestick immerses the previous one. Such scenarios indicate that the current candlestick had a greater open than the former but closed lower than the previous candle.

You can hardly spot the case. However, going through the Open – High – Low – Close values shows that on Wednesday, the candle closed at 1.6288, while the Thursday one opened at 1.6293.

The above engulfing candle definition comes from a book by Steve Nison, Japanese Candlestick Charting Techniques. However, market analysts have discussed the engulfing stick definitions that should apply in markets that do not close on day-to-day – markets, such as cryptocurrencies and forex.

However, let us turn to Cardano. The ADA market has had massive rejection near the daily open due to powerful resistance zones in the Ichimoku network. The level faces towards the Senkou Span B (1.7024), Kijun-Sen (1.7163), and Tenkan-Sen (1.6455). That can be the reason behind the struggle by Cardano pushing higher. Also, the Chikou Span is still beneath the candlesticks, indicating continued weakness inside the Ichimoku.

Another thing indicating continued weakness is the oscillators on the ADA’s chart daily. On a bullish market, the RSI sold zones are 50 and 40. ADA already faced rejection in the 50 zones in the Relative Strength Index, currently moving towards 40. Will the asset bounce at level 40 in the RSI? That can hardly happen. The vital trigger for a southward dive is the %B crossing below 0.2. Keep in mind that the %B is at 0.35, pointing lower at the moment.

You may have to be extra careful with a bullish move in this area. Currently, Cardano is below the Senkou Span B, Senkou Span A, Kijun-Sen, Tenkan-Sen. Moreover, Chikou Span remains in open space. Senkou Span A beneath the Chikou Span (1.2959) is the only existing support on the ADA daily chart. Meanwhile, the Kumo beneath the Chikou Span indicates weakness. There are possibilities of a flash crash to 0.84 – 0.94 support area.

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