Cardano (ADAUSD) price at $0.0955 consolidating for another strong bearish move
- ADAUSD has lost 0.45 since the markets opened.
- Cardano prices are currently trading in a bearish flag in both the daily and the 4-hour chart.
- The crypto is in a long-term bearish market.
- A strong bearish move is in the offing which will break the current flag structure downwards.
- The next bearish move is likely to retest the support level at $0.0845.
ADAUSD opened today’s trading at 0.0967, reaching highs of 0.0977 before dropping again. The crypto has lost 0.45 percent of its value since the market opened today. at press time the price for Cardano was at 0.0965.
Daily Chart analysis
The daily chart shows ADAUSD is currently in consolidation after a strong bearish move. The Bollinger Bands shows that prices are slightly bouncing off the lower band, indicating a strong volatility on the daily chart.
The MACD indicators also show that the crypto is in a strong bearish move, with a reading of -0.007. The divergence from the baseline also indicates that the current bearish move is long term. Fibonacci retracements also show the prices facing resistance at the 23 percent level.
ADAUSD 4-hour chart Price analysis
After a strong bearish move that started on the 2nd of September, the crypto prices started consolidating on September 6th.
The prices have since formed a bearish flag that has lasted for more a week, trading within an ascending channel. A major support level has also formed at $0.0845, marking the level when the crypto entered a bearish flag.
Fibonacci ADAUSD retracement also shows the level of retracement being 23 percent at $0.0958 level. The crypto looks poised to break the Fibonacci retracement of 23 percent, however, it will face much much stronger resistance from the 38 percent or 50 percent retracement levels before continuing with its bearish move.
Technical indicators analysis on the 4-hour chart
The Bollinger Bands have squeezed, indicating that the crypto has lost volatility during its short bearish flag period. The squeeze and the current low volatility on the crypto is also a strong sign that a more volatile move is in the offing, and the crypto being on a longterm bearish market, the markets are expected to start a long term bearish move that may break the $0.0845 support levels.
The MACD indicator has also started showing divergence, whereby the prices of the crypto are moving upwards while the indicator is starting to move towards the baseline. The indicator divergence indicates that the next few days, it will be heading towards the negative territory, further showing that the markets are in consolidation for a strong bearish move.
