At press time, Cardano (ADA) has fallen below its $0.50 support line. Major cryptocurrencies, like Bitcoin, either consolidated or fell on their charts. Cardano maintained its long-term bearish thesis.
ADA indicated a likely price reversal on the charts for the smaller time frame. ADA gained 1.7% in the last 24 hours and lost double digits in the previous week. The bulls pulled back as the buying force remained weak at the time of writing.
For now, $0.50 is the coin’s immediate support. The coin’s immediate support areas were at $0.44 and $0.40, respectively. However, if the broader market rebounds and there is a steady flow of buying, there could be potential for a price reversal for Cardano.
Cardano One-Day Price Analysis
At the time of writing, ADA was trading at $0.47. Since April, the currency has formed a descending channel, indicating extreme volatility on the chart. ADA broke the descending channel by falling below the $0.50 price level.
At that time, $0.50 represents the nearest price cap for the coin. If Cardano is able to break above the $0.50 resistance level, the currency could trade towards $0.58. If the price of ADA falls below $0.47, it will float between $0.44 and $0.40.
A drop below this threshold could send ADA back to its lowest price level in over a year. The volume of the coin dropped significantly, indicating that the bears are still in control.
On the 4-hour chart, Cardano showed signs of a price reversal. The price of the altcoin was aiming to break through the 20-SMA line. However, the sellers were still controlling the price trend at that time.
The Relative Strength Index rose, indicating that the price was carrying hope on the chart. Buyers were returning to the market, and further demand could drive the asset above the 20-day moving average.
Increased demand will cause the ADA to trade towards the $0.58 level, and the currency may then aim for the $0.70 level.
Green histograms on ADA’s Awesome Oscillator indicated a change in price movements. AO also displayed a buy signal, as shown by the green histograms.
Convergence Divergence Moving Averages showed strong crossover and green histograms.
The green histograms indicate that the currency might be looking to rise on its charts in the following trading sessions.
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