Jonathan Morgan
Independent Analyst
- Cardano price is at an area of inflection that could dictate the remainder of September’s trend.
- Ichimoku levels warn of imminent weakness and lower prices.
- Oscillators are mixed, with some supportive zones ahead.
Cardano’s price is very close to zones where it will need to decide on its present trend. Cardano will need to hold higher prices to prevent an overwhelmingly bearish event from occurring on the Ichimoku chart.
Cardano’s price must hold above $1.43 to remain bullish.
Cardano’s price action during the Monday session has been highly volatile. Several whipsaws have occurred, with one whipsaw occurring in conjunction with the Litecoin and Walmart fake news event. The Lagging Span (black line) on Cardano’s daily chart is the barometer to follow for identifying near-term price direction. As long as the Lagging Span has a daily close above the body of the candlesticks, then it is assumed that the trend remains bullish.
Cardano’s price is presently trading just $0.02 below the threshold it would need to close at on the daily chart. Two candlestick periods in front of the Lagging Span show two thin-bodied (harami pattern) candlesticks. If Cardano closes at the current level of $2.40, then it will open below the candlesticks. Because the Lagging Span is a sort of ‘trigger’ in the Ichimoku system. The target zone for shorts would be near the $2.05 value area.
ADA/USD Daily Chart
The short scenario can easily be invalidated. The Composite Index recently bounced off a historical support level and is about to cross above its fast average. Likewise, the Relative Strength Index is between the two oversold levels in a bull market (40 and 50). Thus, bulls will need to push Cardano’s price to a close above the Kijun-Sen at $2.58 to invalidate the current bearish outlook.
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