The number of higher price rejection candles at $1.2 displays the Cardano(ADA) buyers failed attempts to overcome the $1.2 resistance. The potential reversal could slump the altcoin to the $1 mark, providing a pullback opportunity. However, the $1.14 mid-support level restricts the correction rally to reach $1.
Key points:
- $1.14 minor support prevents the sellers from dumping ADA price to $1
- A bullish breakout from $1.2 resistance could pump the ADA price by 33.3% to $1.6
- The intraday trading volume in the ADA coin is $2 Billion, indicating a 20.1% gain
Source- Tradingview
The parabolic rally initiated during the second half of march drove the ADA/USDT pair by 50%. On March 23rd, the recovery rally breached a combined resistance of descending trendline and the $1 crucial level with a long bullish engulfing candle.
The buyers pushed the altcoin to the following resistance of $1.2 as they aimed for another breakout pump. However, they failed to breach the overhead resistance even after several attempts, indicating the traders are actively selling on a higher level.
The potential bearish reversal could sink ADA price 12.56% down to $1 support.
On the other hand, a minor support level at $1.12 and a 100 DMA slope prevent further decline and assist buyers to rechallenge the $1.2 resistance.
Technical Indicator
The flattish 50-and-100 DMA along with 20 DMA suggests buyers are gaining control over the sellers. Moreover, a bullish crossover of 20 and 50 DMA could encourage the $1.2 breakout.
The MACD indicator lines(MACD and signal) moving above the neutral zone maintains a bullish tendency for traders. However, the narrowing gap between these lines threatens a bearish crossover.
- Resistance levels- $1.2, and $1.6
- Support levels-$1.1 and $1
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.
About Author
Source: https://coingape.com/markets/cardano-price-prediction-ada-buyers-struggle-to-surpass-1-2-are-we-revisiting-1/