The dominant sell pressure triggered by a series of bearish divergence on the higher daily charts of the ADAUSDT makes ADA, the DPoS platform token attractive to intraday short sellers.
The relative strength index confirmed the downtrend after going below level-25 [daily TF].
Read on for more insights as we dive into the intraday 4HR chart, identifying, significant chart structures and key resistance and support levels.
S/R Levels 4 Hr Chart
Following the path of the daily time frame, the intraday 4HR chart slumped into a downtrend, which became visible as the on-chart RSI dipped by roughly 18% below the level-25 on 17 Sep ’20.
The bulls stopped the price slump in its tracks with a regular bullish divergence on 21 Sep 16:00 sending the ADA price higher. After trading within an ascending channel for a while, the bears again assumed control, forcing the price out of the channel on 27 Sep 16:00.
The intraday downtrend is currently choppy with low volatility after a price close above inside bar resistance on 28 Sep 20:00.
Traders looking to take a long position on the smart contract token [ADA] eye the more recent bearish inside bar resistance for a price breach to the upside. Short sellers, on the other hand, hope for a collapse of the $2.029 support to load up on their trades.
It’s in situations like this that bear squeezes are built.
Cardano (ADA) Intraday Levels
- Spot rate: 2.093
- Mid–Term Trend [H4]: Choppy and Slowing Bears
- Volatility: Low
- Support: $2.022 and $2.07
- Resistance: $2.150, $2.298, and $2.459
