Cardano Price Analysis - May 11

Azeez Mustapha
  • Bearish takeover in both medium and short-term outlook.
  • Selling at supply zones with strong bearish candles especially around the exponential moving averages may be considered.

Cardano, ADAUSD, Cryptocompare chart

ADAUSD Medium-term Trend: Bearish

Supply zones: $0.3800, $0.4000, $0.4200

Demand zones: $0.1800, $0.1600, $0.1400

Cardano's bearish trend continues in the medium-term. The bears' dominance of the market was more pronounced as they retested and break the $0.3000 demand zone in grand style. The bulls kept losing ground as their momentum fade away, particularly at the $0.3200 supply zone. The bears came back strong and pushed the price down to retest the $0.3000 area and gather more momentum to push further down to the $0.02800 demand area. Cardano was in this area on April 28th. This was the bears target and they achieved this as analysed.

The daily candle opened bearish and is below the three exponential moving average crossovers. This suggests more bearish pressure. The three exponential moving averages are fanned apart which connotes strength in the context of the trend and, in this case, a downtrend. The stochastic oscillator witnessed an upward momentum rejection which conversely is in a downward price movement. The overall outlook of Cardano is bearish and traders may continue to enjoy the journey to the $0.2600 area which is the bears' target after breaking the $0.2800 demand zone.

ADAUSD Short-term Trend: Bearish

Cardano, ADAUSD, Cryptocompare chart

Cardano is bearish in the short-term proving that yesterday's advice that patience is key to trading the range was valid. The struggle between the bears and bulls was won by the bears as they broke the lower price range of $0.3050. The downward trend continuation was a result of the bears' pressure and continued the dominance of the market. The price is forming lower highs and lower lows which are characteristic of a down trending market. The daily open price was $0.3013 against yesterday's $0.3195. This means that there are more sellers than buyers on the ground and the price may further be pushed down. The Stochastic Oscillator is in the overbought region and a downward momentum may start soon. The journey to the south has already started.

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

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