ADA Price Analysis: Cardano On Brink Of Breaking 2 Week Channel, What’s Next?

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Cardano rallied past its peers last week
  • ADA price has been rejected at key resistance of $1.45
  • ADA Price has been stuck within an ascending channel for 2 weeks
  • 25 MA is acting as major support

Cardano has been stuck in a 20 cent range for nearly 2 weeks as traders can’t seem to pull off a breakout. ADA price action has turned bearish the last 2 days as Bitcoin fails to break higher. Over the last few days, many altcoins have broken out to the upside but large caps such as LTC & XRP have remained flat. If BTC cannot gain its footing above the $35,000 price region, further downside may occur for the cryptocurrency market at large.

Read More: Cardano (ADA) beats Bitcoin (BTC) & Ethereum (ETH); becomes most HOLD’d crypto

Cardano (ADA) price action is overall weak & flat ever since the low of $1.00 was recorded. Price has created an ascending channel which has provided support for the bulls and resistance for the bears. At the time of writing, price has wicked under the bottom trend of the channel which shows buyers are still in market. Failure to hold the major support of $1.35 will likely result in a downfall to the next support of $1.30. In this bear case, ADA price would have broken its 2 week trend which is not a good scenario for further revival.

ADA Price Analysis: ADA/USDT 4 Hour Chart

Even though price action has turned short term bearish, ADA has continued to hold its 25 MA. If price continues to hold this MA, there is a good setup for Cardano to have a boost to the top of its channel.

On the path there, ADA must break and hold its mid term trend line (shown in black). If this is deemed successful, the major test for the bulls lies at $1.45. A break and hold of this value will likely send ADA on a bullish trend back above $1.50.

Looking at the MACD, we can conclude the price action to be short term bearish as the MAs have crossed under the 0 value back into bearish territory. This setup can be detrimental if bulls fail to step in with strength. The Stochastic RSI is showing slight bullish bias as it has reached oversold values and is curling back to the upside. A break over the 20 value will likely send ADA back to minor resistance of $1.40.

ADA price intraday levels 

  • Spot rate: $1.36
  • Trend: Neutral
  • Volatility: Medium
  • Support: $1.35
  • Resistance: $1.40

Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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