Cardano Chart Update: ADA/USD starts correction after 25% price increase
- Cardano (ADA) bumped into strong resistance and started a correction.
- The sell-off may be extended towards $0.1200.
Cardano (ADA) has been one of the best-performing altcoins in recent days. The coin gained over 85% of its value in ten days and ousted Bitcoin SV from the sixth place in the global cryptocurrency market rating. At the time of writing, ADA/USD is changing hands at $0.1285. The coin has gained over 25% in the recent 24 hours. Now it has a market value of $3.34 billion and an average daily trading volume of $1.11 billion.
ADA/USD: Technical picture
On the intraday charts, ADA/USD has started a downside correction. The coin lost about 1% of its value in a matter of minutes after a short period of consolidation close to the intraday high. The RSI on 1-hour chart has reversed to the downside and moved out of the overbought territory. It means that the bearish correction may gain traction and push the price towards the initial support created by the middle line of the 1-hour Bollinger Band at $0.1250. If it is broken. the sell-off may be extended to $0.1200 and $0.1125 (1-hour SMA50).
ADA/USD 1-hour chart
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The first local resistance is created by $0.1400 with the upper line of the 1-hour Bollinger Band located marginally above this level. Once it is out of the way, the upside is likely to gain traction with the next focus on $0.1450, which is the highest level since August 2018. When it comes to the further upside movement, ADA is on an uncharted territory, which means it is vulnerable to fast exaggerated movements.
ADA/USD daily chart
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Author
Tanya Abrosimova
Independent Analyst
