Cardano’s downward moves from $0.66 dragged the alternative token towards the POC (Point of Control). The Exponential Moving Average ribbons have limited buying endeavors until recently. As a downward channel emerges, sellers would remain alert to halt the prevailing rally in the upcoming sessions.
Nevertheless, breaching the 38.2% FIB mark would see buyers striving for more before surrendering to the pattern’s reversal tendencies. While publishing this post, Cardano changed hands at $0.5315, gaining approximately 7.53% within the past 24 hours.
Cardano Daily Timeframe
While the price action hovered beneath the Exponential Moving Average ribbons, the altcoin’s long-term outlook favored selling activities until the 55 EMA breach during this publication. The altcoin somewhat halted its slow movements around the Point of Control.
The price action seemed prepared to overcome the constricted phase as the 20EMA (northbound) appeared to cross the 50 Exponential Moving Average. The alternative token would possibly see an increased volatility period in the upcoming days.
As the price action breaches the 38.2% FIB mark, bulls might target a closing toward the upward channel’s upper trend line. Such developments would have potential targets around the $0.57 territory. Any close beyond this mark would put ADA into a discovery phase. Meanwhile, sudden selling strength might cancel the bullish tendencies. A closing beneath the setup would affirm this resurgence.
Reasoning
The Relative Strength Index maintained a somewhat bullish outlook as it retested the 59 resistance. A break past this zone might support buyers to secure new highs. Nevertheless, the CMF (Chaikin Money Flow) witnessed several lower peaks. So, CMF’s reversals might affirm a bearish divergence. ADA’s ADX confirmed a significantly weak directional bias.
Final Thought
As buyers secure a break beyond the 38.2% FIB level, Cardano bulls might target a test of the golden FIB resistance before dedicating their activities to the upside trend. Targets would stay as mentioned above. Nevertheless, investors should watch Bitcoin’s actions and impacts on the broad market for profitable moves. While publishing this content, BTC changed hands at $23,873.59, remaining somewhat flat with a 0.08% drop over the past day.
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