Cardano price eyes a drop towards $1.85 as ADA bulls face a wall of stiff resistances

  • Cardano’s path of least resistance appears to the downside.
  • Bearish crossover and RSI point to more weakness in ADA price.
  • ADA sellers target 100-DMA at $1.85 on a firm break below $2.

Cardano price is once again on the slippery slope this Sunday, kicking off a new week on the wrong footing, as ADA bulls lack follow-through recovery momentum.

ADA/USD staged a temporary reversal on Saturday after Friday’s wild moves, which lead to a test of the $2 psychological magnate.

However, a failure to sustain ground near mid-$2s recalled the ADA sellers for another run southwards.  

The third most favorite crypto coin is up about 2% over the week, currently supported above the $2 mark.

Cardano price could see an extension of the downswing

As observed on Cardano’s daily sticks, ADA price continues to face strong offers at the upper boundary of a three-week-old falling wedge formation.

The confluence of the falling trendline resistance, 21-Daily Moving Average (DMA) and 50-DMA around $2.45 acts as a powerful supply zone.

A daily closing above the latter is critical to validating the falling wedge upside break, opening doors for a test of intermittent resistance near $2.80.

Further north, ADA bulls would strive to retest the $3-mark en-route the all-time highs of $3.16.

ADA/USD: Daily chart

However, with the 14-day Relative Strength Index (RSI) hovering below the midline and bear cross confirmed, the downside seemingly opens up towards the $2 psychological support should the daily lows of $2.11 yield in.

Note that the 21-DMA cut the 50-DMA from above on Saturday, flashing the bearish signal.

Fierce cap at $1.85 will be the level to beat for ADA bears on an acceleration of the downward momentum. That level is the intersection of the falling trendline support and mildly bullish 100-DMA.

The next relevant support is seen at the critical 200-DMA at $1.63.


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