Cardano Price Analysis: ADA Price Accumulates Near $0.75; Is 33% Upside On Horizon?

By Rekha chauhan
May 7, 2022 Updated May 7, 2022
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ADA whale interest picking up

ADA price remains range-bound with no meaningful action on Weekends. The coin tested near $0.75 multiple times since the beginning of the week. In between, the buyers lookup for some gains on Wednesday, but wiped all the very next day as $0.90 remains a challenge.

  • ADA price stabilizes near vital support areas with a hint towards accumulation.
  • The price is expected to glide inside the short-term range of $0.75 and $1.0.
  • A double-bottom structure would lend support to the coin on a higher probability.

ADA price challenges support zone

Source: Trading view

On the daily chart, the ADA price remains pressured below the descending trend line from the highs of $1.24 made on April 4. Since then, the price depreciated nearly 40% to the swing lows of $0.75. The falling volume profile with the slide in price relative to the spike near the support level suggests the sellers could not see more downside from here on at least a bounce is what they looking for. In addition to that, the asset is running under the classic falling wedge pattern, which might lead to upside momentum.

A fresh buying momentum would unleash the 50-day ema (Exponential Moving Average) at $0.93 followed by the psychological $1.0 level.

The relative strength index (RSI) stays above the average line even though the price experienced a decline since May 3. Any upside momentum would advocates for a higher price. Currently, it reads at $40.

The volume oscillator is trading at a 24.92 level, which instructs that the short-term volume trend is higher than the long-term volume trend.

On invalidation of the bullish hypothesis, the price would slice the mentioned support zone with above-average volume. In that case, a new record low would be set for ADA.

As of press time, ADA/USD trades at $0.77, down 0.70% for the day. The eighth-largest cryptocurrency by the market cap holds the 24-hour trading volume at $1,169,551,055, according to Coinmarketcap.

 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.
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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