Cardano Price Analysis: ADA Still Consolidates out of the Parallel Channel, What about Recovery?

• Cardano price is trying to sustain out of the parallel channel over the daily price chart.
• ADA crypto is trading above 20 and 50 EMA, however it is still behind 100 and 200-days Daily Moving Average.
• The pair of ADA/BTC is at 0.00002261 BTC with an intraday gain of 0.62%.

Since September 2021, the price of Cardano has been declining along a parallel downward channel, and it is now finally trading outside of it. To begin its recovery phase over the daily price chart, the token is attempting to maintain itself above the channel that is declining. The ADA coin, however, is currently consolidating above the parallel channel that is sinking and is attempting to hold its current level in order to begin its comeback. To record the token’s comeback up to a respectable resistance level of $0.65, ADA bulls must gather themselves. For the price of Cardano to avoid falling into any sort of negative trap, a surge towards the resistance level is required. However, investors can anticipate a major rebound of the token over the daily chart if the price of the ADA coin sustains itself above the declining channel.

The current estimated price of Cardano is $0.54, and over the past 24 hours, it has increased 5.82% in market cap. The intraday trading session saw a tremendous 99.14% spike in trade volume. This suggests that bulls are aiming to build up enough to keep the ADA currency at its present level. Volume to market cap ratio is 0.03463.

To avoid becoming caught in the grasp of short sellers, the price of the ADA coin must continue to trade above the parallel channel that is declining. To allow the toke to advance toward the reasonable resistance level, ADA bulls must gather themselves. Volume change, which is now below average, must increase for ADA to maintain its position above the parallel channel that is decreasing. ADA crypto is trading above 20 and 50 EMA, however it is still behind 100 and 200-days Daily Moving Average.

What do Technical Indicators suggest about ADA? 

Since it has been steadily declining since 2021, the price of the ADA coin needs to remain above the channel in order to enter its recovery phase. The time has come for ADA bulls to reveal to cryptocurrency investors the actual potential of the coin. Technical indicators suggest the uptrend momentum of ADA coin. 

Relative Strength Index showcases the uptrend momentum of ADA coin. RSI is at 61 and is heading towards the overbought territory. MACD exhibits the bullish momentum of ADA coin. The MACD line is ahead of the signal line after a positive crossover. 

Conclusion

Since September 2021, the price of Cardano has been declining along a parallel downward channel, and it is now finally trading outside of it. To begin its recovery phase over the daily price chart, the token is attempting to maintain itself above the channel that is declining. The ADA coin, however, is currently consolidating above the parallel channel that is sinking and is attempting to hold its current level in order to begin its comeback. To record the token’s comeback up to a respectable resistance level of $0.65, ADA bulls must gather themselves. Volume change, which is now below average, must increase for ADA to maintain its position above the parallel channel that is decreasing. Technical indicators suggest the uptrend momentum of ADA coin. RSI is at 61 and is heading towards the overbought territory.

Technical Levels

Support Levels: $0.50 and $0.45

Resistance Levels: $0.55 and $0.65

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.      

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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