TL;DR Breakdown
- Cardano price pushing upwards after consecutive weekly lows but failing to sustain momentum
- Oversold RSI paints bearish picture, with increasing trading volume outlines selling action
- Price keeping clear of $0.93 support but still well away from $1.52 resistance
Cardano price analysis for the day shows mixed signals, as ADA attempts to bounce back from consecutive lowly weeks. Price recorded a slight decline of 2 percent on the day, following on from yesterday’s 5 percent slide downward. ADA price has reached the midpoint of a one month long failing channel, that aligns at $1.20 at the time of writing, after reaching as low as $ $1.21 on the day. Trading volume recorded a 17 percent upturn to compound Cardano’s selling action, which is also reflected by the lowly 14-day Relative Strength Index (RSI) value of 31.09.
The larger cryptocurrency market showed another day of plummeting for major tokens, led by Bitcoin’s 2 percent decline to take price down to $48,500. Ethereum slid 4 percent to keep just above $4,000. Among major Altcoins, Solana slid 6 percent, Polkadot 4 percent and Ripple 2 percent. The biggest decline was seen with Terra price dropping more than 11 percent at $62.89.
ADA/USD 24-hour chart: Lowly RSI shows price far from recovery
On the 24-hour chart for Cardano price analysis the RSI value of 31.09 shows that price is not out of the woods in terms of recovery yet. Recovery momentum could gain strength if price can sustain near the $1.40 mark where the 50-day Exponential Moving Average (EMA) lies. From there, price can challenge the $1.52 resistance. However, with the given bearish run in play any move towards the $1.13 cap could spell an immediate downside past the support floor.
ADA/USD 4-hour chart: Price on the up after crossing crucial EMAs
The 4-hour chart for the ADA/USD pair shows price forming momentum upwards over the last trading sessions. The RSI value sits at 44.92, indicating upward ascend and an ideal buying time. Price sits within the bottom two Bollinger band curves, approaching upwards. Over the next short-term trade, the token will look to garner buyer interest and push price towards the safety of the $1.30 mark.
Cardano price analysis: Conclusion
Cardano price has been subject to consecutive weekly lows, which has propelled price down towards a 3-month low of $1.21. The 24-hour RSI value shows undervalued market status for the token. However, the current trend presents an ideal buying scenario for traders if price can sustain momentum towards $1.40. In the converse, any movement below $1.20 would render would instigate another downward trend.
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