On February 28th, the Cardano(ADA) price broke its sluggish movement over the $0.8 support, with a 12.5% intraday pump. The buyers rechallenge $1 flipped resistance to build upon the underlying bullishness in the market. However, the path to ADA recovery shows more than one hurdle.
Key technical points:
- Cardano price forming an evening star candle at the $1 resistance
- A descending trendline governs the downtrend
- The intraday trading volume in the ADA coin is $1.3 Billion, indicating a 31.2% loss
Cardano Price Daily Chart
Source- Tradingview
Over the past week, the ADA/USDT pair was majorly hovering above the $0.8 support. The several lower price rejection candles at this support indicated the buyers are aggressively defending this level.
On February 28th, the ADA price showed intraday 12.5% gain, reaching the immediate resistance of $1. Concerning yesterday’s Doji candle(Feb 29th), the coin turns red today, forming an evening star candle pattern.
This bearish reversal candle pattern suggests that once a crucial support level, i.e., $1, has flipped to resistance. If sellers hold Cardano price below this mark, the selling pressure would gradually rise and dump the coin by 14%($0.8).
Alternatively, if buyers manage to breach the overhead resistance, the coin holders would get their first sign for recovery.
However, a breakout and closing above a long coming descending trendline is a must for approaching a trend reversal.
Technical Indicators
The 20-day EMA assists the sellers in mounting a strong resistance at $1. Moreover, the 50 and 100 EMA acts as dynamic resistance in this downtrend.
The Relative strength index(45) slope turned down from the midline, maintaining a negative sentiment among the coin traders.
- Resistance levels- $1, and $1.2
- Support levels-$0.8 and $0.7
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-prediction-ada-chart-hints-14-downside-risk-as-buyers-struggles-to-break-1/