Cardano Price Analysis: ADA/USD recovery stopped short of critical resistance


  • Cardano is one of the best-performing coins out of top-20 on Friday.
  • The coin may start the correction from the recent high.

Cardano, now the 12th largest digital asset with the current market value of $1.05 billion, has gained about 5% in the recent 24 hours and over 3% since the beginning of the day. At the time of writing, ADA/USD is changing hands at $0.0407, close to the intraday high. 

Cardano's technical picture

Looking technically, ADA/USD has created a bottom at $0.0330 on November 25 and has been in recovery mode ever since. However, the intraday charts imply that the upside momentum may be fading away at this stage. On a positive side, the price broke above psychological $0.04 and settled above SMA100 (Simple Moving Average) 4-hour for the first time since  November 18. However, the recovery stopped short of the critical resistance created by a confluence of SMA200 and the upper line of the Bollinger Band on the 4-hour chart. We will need to see a sustainable move above this handle for the upside to gain traction with the next focus on $0.0430 (SMA100 daily) and $0.0467 (the upper line of the daily Bollinger Band).

The RSI (Relative Strength Index) on the 4-hour chart has reversed to the downside, signaling that the downside correction may be extended with the first target at the above-mentioned SMA100 4-hour. Once it is out of the way,  SMA50 at $0.0370 will come into focus, followed by the recent low of $0.0330.

ADA/USD, 4-hour chart


 

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