Cardano [ADA] buyers must consider this before opening a long position

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

After plateauing at the $0.51-resistance September, Cardano [ADA] undertook a southbound journey for the last three weeks. Consequently, this descent entailed a trendline resistance (white, dashed) that persistently triggered selling rallies.

With the price action struggling to break the shackles of its 50 EMA (cyan) resistance, the near-term trend seemingly exhibited bearishness. 

A reversal from its newly-found resistance could pose a downside risk in the coming sessions. At press time, ADA was trading at $0.433.

The 4H chart unveiled the bearish edge as sellers find renewed pressure

Source: TradingView, ADA/USDT

As the 20 EMA (red) and the 50 EMA (cyan) kept looking south over the last few weeks, the near-term narrative took a bearish inclination.

The descending triangle setup highlighted the expedited selling advantage as the sellers kept lowering the peaks while the buyers strived to protect the $0.438-mark. The resultant breakdown resulted in the bears flipping this mark from support to immediate resistance.

Then, ADA marked a compression in the $0.438-0.4301 range for over three days. This trajectory entailed a rectangle-bottom-like structure. The coin could see a low-volatility phase in the next few sessions before a plausible breakout.

This structure usually leads to a downtrend after the patterned breach. Thus, a close below the $0.43-support could trigger a selling signal.

In this case, the buyers would look to re-enter the market in the $0.416-zone. Any growth above the 50 EMA and the 3-week trendline resistance would hint at a bearish invalidation.

The Chaikin Money Flow (CMF) saw a