Cardano’s price (ADA), which is 46% lower than its yearly top, is at a price threshold that could make or break a positive reversal. You need to be aware of the following:
Cardano Price Analysis: Daily Chart
The daily ADA/USD charts are currently tracing a course within a descending trend, which defines the bearish movement since the start of March. The ADA reached a high of $0.475. It encountered significant resistance from both the upper channel boundary as well as the 20-day Exponential moving average (EMA) which is currently $0.47.
The resistance level coincides historically with price rejection points. Its significance is confirmed. As of the time this article was published, ADA traded at around $0.44.
This dense area of resistance is highlighted by the convergence between the 20-day EMA at $0.47, the 50-day EMA at $0.54, and the 100 day EMA above the price. This barrier is reinforced by the 200-day EMA, which stands at $0.52. bearish momentum.
Relative Strength Index on daily chart currently stands at 38. This does not go into oversold territory below 30 but shows a downward trend with the potential to continue unless a reversal is made.
A sustained breakout above $0.47 (20-day EMA), with high volume, is required to shift market sentiment and confirm the bullish reversal. The EMA cluster becomes central. resistance zone.
It is crucial to cross this band in order for bullish momentum to be built up, which will allow a breakout above the $0.81 high from March. Otherwise, the ADA could drop to below $0.40 and trend toward the middle of the channel.
The Weekly Chart in Detail
The broader picture, which is the chart for the week, also highlights the negative sentiment that has dominated ADA ever since its high of $3.17 was reached in the late 2021. This series of low highs and low lows represents a classic downtrend.
Prices are currently below long-term averages. These include the 20-week EMA of $0.52 and 50-week EMAs at $48.
Fibonacci levels are drawn between the $3.17 high and the $0.22 low. They provide additional insight. ADA is currently trading near $0.44. This price is higher than the psychological and technical resistance at $0.40.
ADA is struggling to break through the 0.236 Fibonacci retracement at $0.918, a level that ADA cannot seem to get past. If this level is breached, it could lead to higher Fibonacci levels of $1.697 (0.50) and $1.348 (0.382), but that would take a major shift in buying interest and momentum.
For ADA to move out of its current bearish confines, the focus should be on the $0.47 daily resistance (descending channel breakout). This barrier must be overcome to confirm a bullish reversal. The outlook is still bearish until this level has been decisively breached with a substantial volume.
Featured Image from Bitget. Chart from TradingView.com
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