Published 10 mins ago
The Cardano price witnessed a heavy downfall amid the recent downtrend and provided discounted coin prices to interested traders. Though the price gradually shifted sideways, indicating the buyers are wresting for trend control. Here are three reasons why you should invest in ADA.
Source- Tradingview
Cardano Price Turning Sideways
The ongoing downtrend in the Cardano coin seems less steep than the downfall witnessed in from September 2021 to May 2022. Thus, the price action gradually turning sideways suggest decreasing bearish momentum.
Following a dramatic fall, the price shifting sideways is an early sign of trend reversal.
Falling Using Resistance trendline.
The Cardano coin price has been falling for the last seven months under the influence of a descending trendline. The coin price has turned down from this dynamic resistance multiple times, indicating an established downtrend. However, even though the prices witnessed aggressive selling in response to the trendline, it also provides a technical setup for long entry opportunities.Â
The ADA price is expected to break the overhead trendline, projecting an early sign for price recovery. In an ideal condition, this post-breakout rally should drive the prices 167% higher to hit the $0.678 mark.
Relative Strenght Index
The Relative Strenght index(RSI) defines the strength of current market trends by evaluating the speed and momentum of recent price action. Thus, while the ADA price is falling, the weekly-RSI slope is walking sideways, indicating weakness in selling pressure.
Thus, a bullish divergence in this indicator reflects an additional confirmation that the price broke the above-mentioned resistance trendline.
Current Price Action
By press time, the Cardano price trades at $0.25, registering a 91.87% loss from the All time high of $3.10. However, with the ongoing uncertainty in the crypto market, the ADA price may struggle to carry sustained growth and witness prolonged correction.
With sustained selling, the altcoin may plunge another 5% to retest the long-coming $0.24 support.
- Resistance Levels: $0.3 and $0.38
- Support Levels: $0.24 and $0.187
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.
