- Cardano price analysis shows signs of a bull rally as price battles $1.40
- The 20-day moving average line at $1.34 supports the ADA/USD well
- Ascending triangle pattern shows the pair ready to move higher above 50-day MA
The ADA/USD pair is undergoing a churning in a bid to decide the future course of action. Cardano aims to reach to the $1.40 level as the pair builds upon the 20-day MA support line. The key support levels include the $1.34 and $1.30 levels. The buyers need to create massive volumes to surpass the critical resistance levels at $1.40 and $1.45, respectively.
The current Cardano price analysis reflects how the ADA/USD is moving closer to ascending triangle pattern. It seems bullish within the same triangle which began forming in late June. The 200-day moving average line at $1.00 will be essential in creating a bullish triangle in the coming days, provided the bulls maintain a buying momentum.
The bullish ascending triangle pattern signals an upcoming uptrend. However, the same pattern does carry a risk of downfall and it may face selling pressures near the current levels due to resistance at the $1.40 level. There are chances that the triangle may test lower levels before fully maturing to a positive trend as per Cardano price analysis.
Cardano price movement in the last 24 hours: Resuming a bullish rally
At the start of July, the Cardano buyers had a failed attempt at the resistance near $1.50 level. The sellers were eager to push it down and break below the ascending triangle. The higher sloping channel was interrupted by the surging selling pressure closer to $1.48 level. The declining moving averages further encouraged the bears to boost selling pressure and thereby bring the ADA/USD pair down under the $1.40 level.
After continuing the price drop, the pair stabilized near the $1.32 support level. According to Cardano price analysis, the lower channel of the ascending triangle provided the support as expected. At the same support pivot point, the 20-day moving average delivered more support, helping the bulls accumulate more.
Support at the bottom of the ascending price channel is a sign of an incoming bullish rally. The declining volumes are a concern that may nullify the gains. It can result in a small leg downwards as per Cardano price analysis.
ADA/USD 4-hour chart: Short-term gains likely post $1.38
The Cardano price analysis shows that the short-term price prediction has turned bullish. Despite the sellers attempting another journey to 20-day MA at $1.30, the price won’t be declining much below $1.33 since there is ample support underneath, and bulls might turn a slight decline into a quick accumulation phase.
Beyond $1.40, there is massive resistance near $1.45, and then at $1.50. The upper end of the ascending triangle pattern is lined up with massive sell orders that will likely limit the ADA price rise to $1.50. In an extremely bullish scenario, the pair may cross $1.50 and reach out towards $1.72 resistance where the .50 Fibonacci resistance lies.
The RSI is near the 50 level and has a rising slope. The MACD shows no clear indication of a bullish crossover.
Cardano price analysis conclusion: Traders need a bullish breakout sign
Stuck in a tight range of $1.32 and $1.36, the ADA/USD pair needs to pull off a trend breakout. The bearish signs in the Cardano price may not gain much traction beyond the $1.32 support point. The ascending price channel that began in late June is finally materializing into something fruitful.
It remains to be seen where the tug-of-war between the bulls and the bears will end up. At the time of writing, the price is hovering near the $1.35 support line. As the momentum builds up, the first stopover for the price would be $1.375, followed by $1.40 resistance.
Disclaimer. The information provided in this analysis 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.