Cardano's SMA Resistance Threatens Bearish Reversal

Cardano's recent advance has brought it into contact with its 50-period Simple Moving Average (SMA), which is acting as dynamic resistance and threatening to trigger a bearish reversal. This comes as the cryptocurrency remains under the control of a short-term bearish corrective trend.

The momentum indicators are beginning to form a bearish divergence after reaching extremely overbought levels relative to the price action, with fresh bearish signals now starting to emerge, adding to the downside pressure.

Our outlook remains bearish for the cryptocurrency's upcoming trading sessions, as long as resistance at $0.1555 remains intact. Under this scenario, the price is expected to target the key support level at $0.1455.