Cardano Price Analysis: ADA Breaks Two-Month-Long Resistance Trendline; Back To $1?
The Cardano ecosystem significantly impacts the NFT market as it stands as the third-largest NFT player and just witnessed the daily NFT sales hitting $1.3 million today(June 6th). Moreover, with growing interest from market participants, the ADA price jumped 10% at the intraday level and pierced a two-months long descending trendline. This breakout may encourage buyers to reclaim the $0.64 resistance.
Key points:
- The ADA price hits the combined resistance of $0.64, and the 50-day EMA
- The 20-day EMA flips to valid support
- The intraday trading volume in the ADA coin is $1.143 Billion, indicating a 167% gain.
Source- Tradingview
On May 8th, the ADA/USDT pair broke down from monthly support of $0.75, continuing the prevailing downtrend initiated in September 2021. As a result, the altcoin fell to a new lower low of $0.406, registering an 86.78% loss from the All-Time High of $3.10.
The ADA price tested the $0.4 level twice, validating it as legitimate support. Furthermore, the last bounce back from this support soared the coin price 41% higher to hit a shared resistance of $0.636 and a descending trendline.
However, the price jump reclaimed the 20-day EMA, which flipped to valid support and bolstered the resistance trendline breakout. Moreover, a 154% hike in volume activity reflects a genuine breakout and encourages traders to breach another resistance of $0.64.
Conversely, if buyers failed to surpass the $0.64 resistance, the ADA price would continue to follow a lateral path for a few more sessions.
Technical Indicator
The downsloping EMAs(50, 100, and 200) show interesting alignment with some horizontal charts. The confluence of 50 EMA with $0.64, 100 EMA with $0.75, and 200 EMA with $1 increases the defense power of these resistances to stall any potential rally.
The daily-RSI slope is back above the neutral line, which was lost during the early April sell-off. The RSI value above 50% indicates the trader’s sentiment has improved for the Cardano coin.
- Resistance levels- $0.635, and $0.75
- Support levels- $0.54 and $0.45
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