Cardano is trending lower and might be due for a downside break of the nearby support zone. 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. Read more from…

thumbnail courtesy of