Cardano Price Analysis – May 16

ADAUSD Medium-term Trend: Bearish

Supply zones: $0.3500, $0.4000, $0.4500

Demand zones: $0.2000, $0.1500, $0.1000

The bearish trend in Cardano continues in the medium-term. The break of the $0.2500 demand area predicted yesterday was finally achieved by the bears as they kept the market under control. The bullish momentum was lost at the $0.2700 supply area as they fail to breakout from the downward trendline. The bears came in strongly breaking the demand zone at $0.2500 and pushed the price further down to the $0.2300 demand area. If you look at he chart, you can see the long bearish engulfing candle that pushed the price below the three exponential moving averages crossovers and another one that broke the strong demand zone at $0.2500. These attest to the fact that the bears’ pressure and presence are really strong and continuous. The three exponential moving averages are fanned apart which means strength in the context of the trend and, in this case, the downtrend. The daily candle opened bearish at $0.2538 against yesterday’s open of $0.2651. This suggests the presence of more sellers for a further downward push. A minor upward move may occur due to the double bottom formation at the demand area, but this should be seen as a pullback for downtrend continuation. $0.2000 is the bears’ target in the medium-term

ADAUSD Short-term Trend: Bearish

Tronix, TRXUSD, Cryptocompare chart

Cardano is bearish in the short-term. The bears finally won and they broke the $0.2500 lower demand zone of yesterday’s range. The bulls lost momentum completely at the $0.275 supply zone and the bears’ presence and pressure pushed the price further down to $0.2350, after breaking the $0.2500 demand area. The price is forming lower highs and lower lows that are characteristic of down trending market as seen from the chart. A retest of $0.2500 is likely which will bring in more sellers that will further push the price southward. The stochastic oscillator is in the overbought region and, as more bearish candles are formed and closed, Cardano might likely witness another low.

The views and opinions expressed here do not reflect that of and do not constitute financial advice. Always do your own research

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