Published 55 mins ago
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
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.
Source: https://coingape.com/markets/cardano-price-analysis-ada-breaks-two-month-long-resistance-trendline-back-to-1/