Cardano (ADA), recently dropped below $0.50 support level, as reported by press time. Like Bitcoin, other major altcoins also have consolidated or fallen in their charts. Cardano (ADA), which has a longer-term bearish theme, continued to show its bearish bias.
ADA hinted at a potential price reversal in charts for a shorter period of time. Over the past 24 hours, ADA has increased by 1.7%. The last week saw a double-digit drop in ADA. As the buying power remained bleak, bulls seem to have lost their grip.
At the moment, $0.50 has been acting as the coin’s immediate resistance mark. There were two price points that provided immediate support for the coin: $0.44 and 0.40. Cardano could see a rebound in its price if the market is healthy and there’s continued buying power.
Cardano Price Analysis: One Day Chart
At the time this article was written, ADA traded at $0.47. Since April, the cryptocurrency has been in a downward channel that reflects bearishness. Recently, ADA broke from the descending channel after it fell below the $0.50 mark.
At this moment, $0.50 acts as the closest price ceiling. If Cardano manages to surpass the $0.50 price level, then the coin might trade at $0.58. ADA could trade between $0.44- $0.40 if the price drops below $0.47.
A drop below which could cause ADA to touch its year-low price. The volume of the coin dropped significantly, indicating that bears are still in control.
Technical Analysis
Cardano’s price showed signs that it was heading in the opposite direction on the 4 hour chart. Altcoin’s price was trying to climb above the 20 SMA line. However, at this moment the momentum in the altcoin’s price was being maintained by sellers.
Relative Strength Index saw an increase, which indicated that the market was positive. Buyers are returning to the market, and an increase in demand could propel the asset higher than the 20-SMA.
ADA could trade close to the $0.58 price point due to increased demand. After that, the coin might attempt to hit the $0.70 price mark.
Related Reading| Ethereum Profitability Dumps To 2-Year Low As Price Corrects Below $2,000
ADA’s Awesome Oscillator displayed green histograms and this meant a change in price momentum. The green histograms in AO were a signal of a buy signal.
The Moving Average Convergence Divergence saw a bullish crossover that produced green histograms.
The green histograms indicated that the coin might attempt to climb on its charts over the next trading session.
Suggested Reading | Cardano TVL Sheds $205 Million Since Hitting All-Time High