Sunday, August 14

Cardano (ADA) fails to resume its uptrend. Where is it headed?

After staying locked in a big side above $ 2.08 and resistance at $ 3.03, ADA lost the immediate support level and went straight to $ 1.90. Now the price of Cardano is being defended by buyers, can it regain its trend soon? Find out here.

At the time of writing ADA is trading at $ 2.01, accumulating a 1.76% gain in the last 24 hours, but maintaining a 7.80% weekly loss.

With a market capitalization of $ 67.506 million it continues to be quite solid in the TOP 5 of the Crypto Online ranking.

ADA price technical analysis

On the daily candlestick chart we saw how the price plummeted rapidly yesterday, while the entire market had its eyes on Shiba Inu.

However, ADA managed to get support at $ 1.90, and now we are seeing a good recovery.

Unlike other cryptocurrencies, Cardano hadn’t been making any interesting profits recently. Price remained locked on a large side, and with the previous dominant force being bullish, it seemed likely that it would soon be broken by resistance.

Now we are seeing Cardano again in short-term trouble. The 8-day EMA and 18-day SMA moving averages are crossed to the downside. We should wait for ever higher lows and highs on the daily chart to confirm that the bulls have regained control.

However, if we look to the left we see that the buying force is still dominant, and it may surprise us soon. The 200-day SMA below price confirms that Cardano’s major trend is bullish.

Cardano medium-term trend continues bullish

From the weekly time frame we see that the price has been retreating since the beginning of September, following a bullish rally that took ADA to an all-time high of $ 3.10.

The strength of the pullback is considerably less than that of the momentum, which has allowed the Cardano trend over the medium / long term to remain in the hands of buyers.

The 8 EMA and 18-week SMA moving averages are crossed to the upside and are working as dynamic supports.

Now the rejection that we are seeing at the support located at $ 1.90, may be announcing the bottom of the retracement. In case this level is lost, we will see sales at least up to $ 1.67.

To confirm that the bulls have regained control, the resistance at $ 2.30 must be broken. At the moment this is the most likely scenario.

Cardano Trend Analysis (ADA). Chart source: TradingView.

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