The Cardano (ADA) price is currently trading at a crucial spot between an important resistance level and a strong support area. The ADA token price has been on a steady decline long-term and a decisive move is predicted soon in order to determine the future trend’s direction. From the technical analysis on the weekly time frame, we can see that the red circle marking the price having gone up to the resistance area around $0.41 and then falling below again is a bearish sign. This means that the previous breakout was invalid. Also, the failed RSI breakout above 50 (red icon), which is a momentum indicator showing whether a market is overbought or not, breaks the upward trend for bearishness.

Moving down to the technical analysis from the six-hour time frame, we can observe that the ADA price has been beneath a downward resistance level since April 15. This implies that bearish trend is still in place until a breakout is achieved by the price. Additionally, the price is close to the convergence between a horizontal support area of $0.36 and the 0.618 Fibonacci retracement support level. This level is important as it is seen as a floor during corrective price movements. A break out from this price level could drive the ADA token price up to the 0.618 Fib retracement level of $0.42. On the other hand, if a price breakdown occurs, it is expected to drop down to around $0.30. With no clear signs present in either direction, both breakouts and breakdowns remain possible.



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