Cardano Price Support Holds Near Critical $0.42; Time To Accumulate?
Cardano (ADA) price support shows the impeding next big move in the price. ADA shows sideways movement with a mildly positive outlook. The price tested the multiple support zone near $0.42 and we expect a swift recovery to follow soon. ADA/USD might jump toward $0.50 amid renewed buying momentum.
The recent market structure has favored the bears. However, in the fresh trading week, there is a broader recovery in the prices. The flagship cryptocurrency, Bitcoin gained 1.24%, while Ethereum jumped 1.55%.
- Cardano’s price started the week on a marginal higher note as the gains lack impulse buying momentum.
- The price hovers near the critical demand zone with low volatility indicating indecision among investors.
- A decisive break below $0.40 on the daily basis would strengthen the bearish outlook.
Cardano price support provides a clue of a probable accumulation near the lower levels. Right now, the price is struggling at a critical level, where any directional move will bring wild swing moves.
The daily chart shows the accumulation
ADA traded in an ascending channel from the lows of $0.40, made on July 13. The price appreciated nearly 50% to the swing highs of $0.59. The price tested the lower trend line of the channel on August 17. However, bulls gave up the gains, and the price dived to multi-month lows in just three days, indicating a strong selling force.
This also coincides with the breach of the 20-day exponential moving average convergence, which added to the bearish outlook in the coin.
The daily RSI (14) hovers near the double bottom zone, indicating the oscillator might make an uptick. Currently, it trades below the average line while reading at 38.
A daily candlestick above $0.45 would be a bullish confirmation. The longer the price stays below the mentioned level, the more pressure builds up.
On moving higher, the price could test the psychological $0.50 mark.
On the flip side, a break below the session’s low would ruin any bullish hope. If that occurs, the gate will be open for the low of May 12 at $0.39, and probably a fresh new low.
Moving on to the 1-hour chart, the $0.45 mark remains a challenge for ADA buyers. Although, the price trades modestly higher in the past few hours.
Also read: Breaking: Cardano (ADA) Price Bullish As Developers, IOHK Confirms Vasil Hard Fork Sooner
The RSI remains neutral at 44. The oscillator is weak below 50.
There is a higher probability of the price piercing below $0.42. Investors could initiate fresh short positions in that case.
In contrast, a move beyond $0.45 would seek further upside gains toward $0.50 in the short term.
As of press time, ADA/USD is exchanging hands at $0.43, up 1.34% for the day.
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