Cardano Price Analysis: ADA is still struggling to gain uptrend momentum to break out of this pattern


  • On the daily price chart, Cardano price is trading with a significant downtrend.
  • The value of the ADA cryptocurrency fell below the 20-, 50-, 100- and 200-day daily moving averages.
  • The ADA/BTC pair is at 0.00002344 BTC with an intraday gain of 0.12%.

On the daily price chart, the price of Cardano has declined via a downward parallel channel. In order to signal its breakdown, the token is trading towards the lower trendline after stabilizing inside the horizontal area bounded by the range. The ADA coin should bounce above the upper trendline of the consolidation phase and then later above the parallel channel. To enter its recovery phase, the ADA currency must garner support from customers. The lower trend line of the parallel channel should not be crossed by the token when approaching the consolidation period. To avoid more falls, ADA needs to attract more customers.

Cardano’s price is currently $0.44 CMP and in the last 24 hours it has lost 1.25% of its market value. The intraday trading session saw a 12.94% decline in trading volume. This demonstrates that dealers are trying to rally and pull ADA drastically. The volume to market capitalization ratio is 0.02991.

For the price of the ADA coin to enter its recovery phase, more buyers are needed. The value of the digital currency fell below the daily moving averages of 20, 50, 100 and 200 days. The ADA coin should bounce above the upper trendline of the consolidation phase and then later above the parallel channel. The gradually decreasing volume indicates that the ADA coin is falling.

The lower support is at $0.40 and the upper resistance is at $0.55.

Will ADA be able to recover again?

The recovery phase is being prepared by drilling ADA parts. The token is however under pressure from short sellers at the moment and is moving in the direction of the lower trendline. To avoid falling further, ADA must rally support. The technical indications indicate the downtrend speed of the ADA coin.

The Relative Strength Index showcases the bearish momentum of the ADA coin. The RSI is at 39 and heading into oversold territory. MACD shows the downtrend momentum of the ADA coin. The AMCD line is about to cross the signal line down, resulting in a negative crossover.

Conclusion

On the daily price chart, the price of Cardano has declined via a downward parallel channel. In order to signal its breakdown, the token is trading towards the lower trendline after stabilizing inside the bounded area of ​​the horizontal range. The ADA coin should bounce above the upper trendline of the consolidation phase and then later above the parallel channel. The ADA coin should bounce above the upper trendline of the consolidation phase and then later above the parallel channel. A gradually decreasing volume indicates that the ADA coin is falling. To avoid falling further, ADA must rally support. The technical indications indicate the downtrend speed of the ADA coin. The RSI is at 39 and heading into oversold territory.

Technical levels

Support Level: $0.40

Resistance level: $0.55

Disclaimer

The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only, and they do not constitute financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.

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