- Cardano price is having trouble overcoming the $0.369 hurdle while the RSI continues to tank.
- ADA could slide 15% to retest the $0.303 support level.
- A flip of the $0.369 resistance level into a support floor with the backing of rising momentum will invalidate the bearish outlook.
Cardano price shows an ongoing struggle at a hurdle that has previously served as a stable support. A failure to move past this blockade without the blessings of bulls will be short-lived and could result in a reversal of the trend.
Cardano price at wits’ end
Cardano price inflated by 54% in the last three weeks and has retested the $0.369 hurdle twice. As a result, ADA has produced equal highs at this barrier, which could lead to two things.
- A double top formation that results in a trend reversal and a 15% downswing that retests $0.303.
- Or a minor run-up to collect the buy-stop liquidity above $0.369, followed by a retracement to $0.303.
Both outlooks are plausible since the RSI is showing signs of waning momentum. Looking at the price action of ADA for the last few months shows that every local top has been a result of declining momentum.
Therefore, investors need to pay close attention to Cardano price, which shows a similar setup. Beyond $0.303, the 62% and 70.5% retracement levels at $0.288 and $0.277, respectively, are good places for buyers to make a comeback.
ADA/USDT 12-hour chart
On the other hand, if bears fail to make their presence known, Cardano price could bounce around $0.321 and allow the RSI to reset around the midpoint at 50. In such a case, if ADA produces a twelve-hour candlestick close above $0.369 that flips it into a support floor will invalidate the bearish thesis.
Such a development could see Cardano price revisit the $0.403 and $0.441 hurdles.
Here's how Bitcoin price moves could affect Cardano price
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum whales turn bullish with Shanghai upgrade less than a month away
Ethereum (ETH) whales holding between 1,000 and 10,000 ETH have been scooping up the altcoin consistently for a week. With the countdown to the Shanghai upgrade and the ETH token unlock event, there is a spike in Ethereum demand among retail investors.
Ripple price to close the week with a bang as next week will be crucial for another 20% profit
Ripple price is closing this week with very profitable numbers, even if a fade is ongoing. The fade occurred after bulls received a firm rejection at $0.50 and have been trading lower from that level since. If bulls can keep their hands on this momentum and the Relative Strength Index (RSI) is not overbought, at least some 20% profit is being prepared for next week.
Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?
Cardano (ADA) price is making the cut and has been shortlisted by several analysts that have put ADA in their top altcoin, primed to explode to the upside soon. ADA is flirting with a second week of gains and could recover its attempt to hit $0.415 as a crucial level for any further uptrend or downtrend.
Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?
Vechain (VET) price had a busy week as several new partnerships were announced. Next to integrating with Dappradar to promote cross-chain visibility, the partnership with Boston Consulting Group might be the one that draws the most attention. Vechain price though is not taking this news in a good way and rather is at risk of tanking further.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.