The V-top rejection from the $1.2 resistance plunged the Cardano(ADA) price below the $1 crucial support and 50-day SMA. The sellers continue to pressure the altcoin leading to the March bottom support at $0.78. However, a possible reversal from this support could initiate a range-bound rally in ADA.
Key points:
- The ADA price lost 22.5% within a fortnight
- The ADA plunged below the 50-day SMA
- The intraday trading volume in the ADA coin is $444.2 Billion, indicating a 30% loss
Source- Tradingview
The ADA sellers regained trend control after achieving long wick formations in the daily candles near the $1.2, resulting in the 100-day SMA fallout. Amid the ongoing downfall, the ADA prices crossed under the $1 mark after saving immense selling pressure near $1.20.
The freefall accounts for a discount of 22.5% in the last 12 days and the fallout of the crucial psychological barrier at $1. Moreover, the prices recently cracked under the 50-day SMA as the selling pressure grew.
The downfall in ADA coin price undermines the V-Shaped reversal observed in late March and heads lower after retesting the 50-day SMA fallout.
The potential bearish rally could depreciate the altcoin by 16.5% to $0.85.
Alternatively, an early bullish reversal can push the price to $1.
Technical Indicator
Vortex indicator– The widespread gap between the VI+ and VI- slope indicates aggressive selling in the market.
SMA– The downsloping 100-and-200-day SMA reflects an overall bear trendline, whereas the flattish 50-day SMA accentuates a short-range bound rally. However, the ADA price trading below these EMAs lines suggests the path to least resistance is downward.
- Resistance levels- $1, and $1.1
- Support levels-$0.85 and $0.78
Disclaimer
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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Source: https://coingape.com/markets/cardano-price-analysis-ada-price-lost-1-support-back-to-square-one/