Cardano Price Analysis: Bulls struggling to conquer 50-day SMA for the second consecutive day

Cardano price

TL;DR Breakdown

  • Cardano formed double bottoms approaching yesterday’s close 
  • 1 out of the 4 on-chain signals is pointing towards bearish strength.
  • At the time of writing, ADA swung into the middle lows of $1.53 – $1.56 price levels 

Cardano Price Analysis: General price overview

Cardano formed double bottoms approaching yesterday’s close following tight trading between the bears and the bulls on the 24-hour chart. The coin opened today’s daily chart with an uptrend for consolidating past the Bollinger band moving average. ADA has been trading a few candlesticks from the middle band on the 4-hour chart. The 20-day exponential moving average at $1.65 remains few points ahead and the main target for the bulls in the upcoming sessions.

Sentiment has already turned downwards and buyer volumes are only incoming to purchase the dip below the EMA. If the buyer volumes are high, an attempt towards the EMA is possible, which might be accompanied by a rally to the upper hand at $1.94. Closing above $1.94 indicates the possibility of another leg of bulls that might correct near the $2.47 all-time high.  

Cardano price movement in the last 24-hours: ADA stuck below resistance at $1.56

The Bollinger bands expanded at the start of the daily chart indicating increasing volatility across the market. Cardano’s RSI has been trading within the neutral zone until the few recent hours when the indicator shifted to the overbought region, suggesting a suppression of the bears. This is good tiding for buyers who are attempting to beat resistance around the 50-day simple moving average at $1.56.  

Source: TradingView

Overall, 1 out of the 4 on-chain signals is pointing towards bearish strength. The derivative signal is lying on the neutral zone, while 2 out of 2 exchange signals are bearish. The only bullish signal among the fundamentals is the net network growth, which suggests an increase in traffic of Cardano users and the quality, robustness, and stability of the network. 

Cardano 1-hour price chart: RSI turns downwards to the oversold region

The RSI has turned downwards below 30 into the oversold region, indicating residing bullish momentum and the entry of sellers around the $1.55 resistance. There are more red candlesticks trading below the middle Bollinger band and selling pressures are pushing the price of the coin down the lower band. The moving average at $1.56 is serving as overhead resistance and at the same time as the upper limit of the bands. 

At the time of writing, the price of the coin has swung into the middle lows of $1.53 – $1.56 price levels after marking a descending triangle on the 24-hour chart. If the pattern completes the lower angle of the triangle, this could create a bearish pullback towards the early morning downswing that market the daily low at $1.5300. 

Source: TradingView

Cardano price analysis conclusion: What to expect for ADA?

Breaking below $1.50 could introduce weaknesses that might bring the lower supports at $1.46 into play. This might encourage a drop to $1.33 and a flip below the $1 psychological support. It is crucial for buyers to wage support from the broader market so as to support a rally above the 50-day SMA, and help the price to correct near the 20-day EMA.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Richard Adrian

Richard Adrian

Richard is a versatile fintech analyst with a deep understanding of blockchain domains. As much as technology fascinates him, he finds the intersection of both technology and finance mind-blowing. The firm belief that fintech will drive the future has brought him to the crossroads of Fintech discoveries and transmission of immutable data to a wider audience - Cryptopolitan.

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