ADA Price Analysis – October 16
Cardano (ADA) is poised for further sell-off it moves below the moving averages.
Resistance levels: $0.120, $0.125, $0.130
Support levels: $0.090, $0.085, $0.080
ADA/USD is moving with strong bearish candles since a few days ago, the massive drop has positioned ADA in a decline mode. Looking at the daily chart, the trend is still maintaining an ascending channel pattern around the 9-day and 21-day moving averages. The daily candle touches the previous support at $0.100. A potential pullback may likely take the price above the upper boundary of the channel.
Where is ADA Price Going Next?
Should in case the recent rally continues and move below the 21-day MA, it may likely extend to the main support levels of $0.090, $0.085, and $0.080 respectively. If the price fails to swing lower at the aforesaid resistance level, the high move could visit the $0.120, $0.125, and $0.130 resistance level. Currently, on the RSI (21), the signal line is seen moving below 55-level, indicating a continuous bearish dominant.
Due to the current market condition, ADA/USD has remained in a bearish movement as the bulls fail to stop the downtrend. Further low might send price to the strong supports at $0.090, $085, and $0.080 respectively.
ADA/BTC Market: Consolidating at the Upside
When compares with Bitcoin, the ADA price is hovering around the 9-day and 21-day moving averages and within the ascending wedge channel where the price is expected to break out but as revealed in the daily chart, the price is set to break down below the moving averages within the ascending channel.
However, should the price cross below the moving averages, then, the market may experience a downward trend that may likely touch the nearest support level of 800 SAT and below. Furthermore, the bullish sentiment could push the market upward to reach 1050 SAT and above. The RSI (14) indicator confirms that the market may continue to follow the downtrend as the signal line moves below the 50-level.