The very much known Ethereum-killer and the 7th largest crypto, Cardano is on the verge to exit the top 10 very soon. The asset is trading at almost similar levels for quite a long time and failing to range high, eliminating the possibility of a strong rebound. And hence this stagnant behaviour of the ADA.has raised pretty much questions among the investors.
After the ADA price reached the yearly highs at around $1.6 underwent a steep drop and woefully maintained the same trend until now. All the probability of a rebound went in vain as the price was more attracted to the strong support levels at $1.01. Yet, now when the price cemented at the lower levels, the asset manifested some strength to rebound from lower levels. However, it appears to be a very short-lived one as the gains are shedding slowly.
The ADA price maintained a notable consolidation since the beginning of the previous week. But the asset quickly fell into a descending trend since the mid-week and again smashed the $1.07 regions yet again. Currently, the asset sliced through the descending parallel channel in the early trading hours and spiked high. However, after jumping a little the asset is consolidating just above the resistance.
And hence if the price slides, it may retest the resistance levels of the parallel channel and also may exhibit a fakeout. However, the possibility of consolidating at these ranges followed by a notable upturned towards the crucial levels at 200-day MA appears to be high as the 50-day MA is acting as strong support in the small time frame. Therefore, the Cardano(ADA) price may follow a slow yet steady uptrend and eventually hit the upper resistance anytime in the week.
Source: https://coinpedia.org/price-analysis/cardano-still-in-danger-zone/