Cardano Price Analysis: ADA/USD struggles with trendline resistance
|- Cardano stuck in consolidation between $0.12 support and the hurdle at $0.1250.
- ADA/USD immediate upside is dealing with selling pressure at the 100 SMA and the descending trendline resistance.
Since Cardano tested $0.14, its market has been dominated by declines and consolidation. The cryptoasset’s upside is limited by a descending trendline. Moreover, it is becoming difficult to hold onto higher support areas such as $0.1325, $0.13 and $0.1250. At some point, the price action slipped under $0.12 support. However, at the time of writing, ADA/USD is dancing at $0.1226.
Marginally under the prevailing market value is the first support highlighted by the 50 SMA in the hourly range. A strong bearish arm is pressing down on the moving average support. The arm is aided by the downward sloping RSI. A closer look at the indicators shows tendencies of ADA settling for consolidation between the support at $0.12 and the range resistance at $0.1250.
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If Cardano bulls fail to take down the trendline resistance and resume gains above $0.1250 and the 100 SMA, there is a likelihood of the selling pressure taking over. Besides, the crypto market is generally bullish at the time of writing which is a disadvantage to the ADA/USD pair.
It is not clear if the launch of token staking in August would revive the bullish frenzy with gains targeting $0.20. For now, holding above $0.12 is the main concern among the bulls. On the other hand, a break past the trendline resistance would to some extent improve confidence in Cardano’s recovery.
ADA/USD 1-hour chart
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