Multiple Time Frame Ichimoku Kinko Hyo Analysis

Cardano (ADA) 3-week Ichimoku Chart

Above: Cardano (ADAUSD)

If you are someone who bought Cardano at the top of the market near the $3.00 value area, then the 3-week chart is probably a very, very depressing looking chart. Of course, six consecutive bearish candles are depressing itself, but then when you consider that each of those candlesticks represents 3-weeks… ouch.

Cardano has struggled holding the closest Ichimoku support levels on its 3-week chart: the Tenkan-Sen at $2.08 and the Kijun-Sen at $1.62. Currently, Cardano’s only support showing signs of respect is the 38.2% Fibonacci retracement at $1.28 – but it’s barely holding onto that. $1.20 is the make-or-break line for Cardano on the 3-week chart. The second-largest high-volume node is the capitulation line. If Cardano has a close below that level, it may not stop selling off until it hits $0.40.

Cardano (ADA) Weekly Ichimoku Chart

Above: Cardano (ADAUSD)

Cardano’s weekly chart shows similar, imminent price collapse conditions. Senkou Span B on the weekly chart at $1.28 is the final support zone for Cardano. And just like what we looked on the 3-week chart, Cardano’s ability to hold this final support looks suspect. However, the oscillators may provide some reprieve. The Relative Strength Index has not closed the weekly candle yet, but it is now trading below the final oversold level of 40. A strong bounce may occur if the bulls can get the Relative Strength Index back to 40.

Additionally, the Composite Index on the weekly chart is at a historical support level. And finally, the %B has dipped below 0.2 – a very bearish event. But if sellers don’t capitalize on that cross below 0.2, we’re looking at a potential bear trap.

Cardano (ADA) Daily Chart

Above: Cardano (ADAUSD)

Cardano’s daily chart doesn’t provide much information other than a clear and persistent move south. The %B on the daily chart has been trading below the 0.2 level for nearly a month. Additionally, as Cardano has moved lower, the Composite Index has moved higher and into neutral territory. Regular bullish divergence enow exists. The most important information on the Composite Index is the location of the next cross over or under. When the Composite Index moves above its moving averages while in a neutral position, that can trigger explosive moves.

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