The Test to Come for Cardano, As It Continues to Slide Down
Skerdian Meta • 1 min read
Cardano was pretty bullish in the first half of May, being in the group of cryptocurrencies which were continuing he uptrend, while the rest of them including Bitcoin, were stalling. Cardano lost around 605 of the value during the crash but even after that it seemed more bullish then most other cryptocurrencies.
It started to move higher slowly, with moving averages like the 50 SMA (yellow) and the 100 SMA (green) providing support on the H4 chart. The lows were getting higher, although the 20 SMA (gray) was acting as resistance at the top.
Last week buyers had the last attempt and this week ADA/USD has turned bearish again. it did find support at those two moving averages on the H4 chart and formed two hammer candlesticks, which are bullish signals. But there was no follow through, which would push the price higher, probably above the 20 SMA. But it is sliding lower instead.
So, sellers are back in control in Cardano now and they will face the same moving averages soon. If they manage to break below the 2 moving averages which have been acting as support, then that will open the door for May’s lows at $1.04-05.