Technical Analysis and Market Entry: Cardano is Subject to Another Bear Attack
- ADA/USDT price action is consolidating, following the steep drop late in October.
- The price movement has constructed a bearish flag pattern via a daily chart view.
ADA/USDT Recent Behaviour
Cardano’s ADAs very much stuck within consolidation mode, which has been observed since the early part of October. ADA/USDT has attempted to stabilize following the brutal bout of selling late in September. The price was forced to drop a chunky 35% from the heights of $0.054000 down to $0.036000. The retreat south saw the ADA at its lowest levels since February.
ADA/USDT has been stuck within a bearish trend since late June after the price hit heights of $0.10000. It was the highest ADA had reached since September 2018; however, the bull run was cut short. A huge area of supply can be observed through the psychological $0.10000 territory. The price has not comfortably traded above this zone of resistance mentioned since late August 2018.
Rallies are subject to being sold by the bear; any periods of consolidation or pullbacks are vulnerable. Given that this type of trading behaviour is being seen again, price action has formed a bearish flag structure. It is subject to being capitalized on by the market sellers, which could spark a fresh wave of downside. At the time of writing, ADA/USDT can be observed testing the lower acting trendline to the downside.
Weiss Ratings: Cardano (ADA) is Clearly Superior to EOS
Weiss Ratings, The world’s largest cryptocurrency rating platform, believes that Cardano (ADA) is superior to EOS.
In a tweet, the rating company said:
Cardano is clearly superior to EOS. EOS was first to market, but it’s becoming increasingly clear that of the two, Cardano is vastly superior. More details on this in subsequent tweets.”
Their view did spark some disagreement and much discussion among the followers of both the networks. Weiss then further backed up their opinion with some reasoning, explaining:
Cardano completed the 1st snapshot and balance check for its incentivized Shelley testnet. This latest step toward staking will allow investors to earn rewards on their ADA for the 1st time.
Given the earlier described bearish flag structure, short positions are increasingly attractive. There have been several rejections recently at a near-term supply zone, $0.045000, which backs the case for further potential downside. A sell from the current market price would be of interest, with targets at; $0.036000, $0.030000 and then $0.027000. Stops to be placed just above the supply and flag at $0.047000.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.