Cardano Price Analysis: ADA/USD may retreat to $0.0450 before another bullish wave

Cardano (ADA) hit the intraday high of $0.0548 during early Asian hours and retreated to $0.0537 by press time. Despite the sell-off, the coin is still nearly 6% higher from this time on Sunday. It takes the 12th place in the global cryptocurrency rating with the current market capitalization of $1.4 billion and an average daily trading volume of $154 million.

ADA/USD: Technical picture

After a short-lived sell-off, Cardano (ADA) is moving within the upside trend above psychological $0.0500, strengthened by a combination of 4-hour SMA50 and SMA100 and 61.8% Fibo retracement for the downside move from February 2020 high. The overall momentum is bullish as long as the price stays above this area. If it is broken, the sell-off may be extended towards $0.0450. This support is created y May 10 low and 4-hour SMA200.

The RSI on the intraday charts reversed sharply from overbought territory and now oints downwards, which adds credibility to a short-term bearish scenario.

ADA/USD 4-hour chart

On the upside, bulls will have to regain ground above $0.0550 to improve the short-term picture. A sustainable move above this area is needed for the upside momentum to pick up and take the price towards the next psychological barrier of $0.0600. The next critical area is $0.0620-$0.0630 that served as a consolidation area in the end of February.

ADA/USD daily chart