Cardano Is Under Strong Selling Pressure At Its $0.48 High

May 05, 2024 at 21:42 // Price
Coin Idol

The price of Cardano (ADA) is in an upward correction and is approaching the 21-day SMA or the $0.48 level.

Long-term outlook for Cardano price: bearish

In the last market activity, the altcoin moved between $0.43 and the 21-day SMA or resistance at $0.52. Cardano is now trading in a limited range of $0.43 to $0.48. At the time of writing, the ADA/USD rate is at $0.47.

If buyers keep the price above the 21-day SMA, the ADA price will regain positive momentum. The altcoin will rise to the high of the 50-day SMA, which is at $0.55. Cardano will fall if buyers fail to break the barrier at the 21-day SMA. ADA price will fall and return to its current support level of $0.43. However, if the bears break the current support, the altcoin will fall to a low of $0.40.

Cardano indicator analysis

The moving average lines are trending south, but the price bars remain below them. The 21-day SMA serves as a resistance line for the price bars. After the price recovery, the price bars on the 4-hour chart have risen above the moving average lines. The uptrend was halted by the resistance at $0.48.

Technical indicators

Key resistance zones: $0.80, $0.85, $0.90

Key support zones: $0.50, $0.45, $0.40

ADAUSD_(Daily Chart) –May 4.jpg

What is the next move for Cardano?

Cardano is aiming for an upward correction while remaining in a narrow range. On May 1, bulls bought the dips at the low of $0.41 but were unable to sustain their bullish momentum above the 21-day SMA or the high of $0.48. The altcoin is in a tight range as the cryptocurrency could see a price rally or a price collapse. Moreover, the formation of doji candlesticks has caused the price action to be immovable.

ADAUSD_(4 -Hour Chart) –May 4.jpg

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Readers should do their research before investing in funds.

Show comments(0 comments)