• ADA/USD attempts a bounce above 100-DMA on Saturday.   
  • Cardano wavers within a descending triangle formation on the 1D chart.
  • RSI trades flat below the midline, keeping the bullish potential limited.

Cardano (ADA/USD) is snapping its four-day losing streak, attempting a minor recovery on Saturday amid a sluggish tone seen across the crypto market.

Earlier this week, the fifth most widely traded crypto currency’s market capitalization of $49 billion surpassed that of the crypto exchange, Coinbase Global Inc., by $1.5 billion.

Cardano is down about 3% over the week, having risen 750% from the start of the year amid increased demand from millionaire investors.  

ADA/USD: Clings to 100-DMA, where next?

As observed on Cardano’s daily chart, the price has bounced off key support, although struggles to find a strong foothold above the 100-Daily Moving Average (DMA) at $1.4242.

If the bulls succeed to extend the recovery above the above level, a test of the falling trendline resistance at $1.5107 will be inevitable.

A descending triangle breakout will get validated on a daily closing above the latter, opening doors towards the 21-DMA at $1.5908.

The horizontal 50-DMA at $1.6277 will immediately challenge the road to recovery.

ADA/USD: Daily chart

On the other hand, a downside breakout from the triangle will be confirmed on a decisive breach of the horizontal trendline support at $1.3743.

Sellers will then gear up for a test of the $1.30 mark, with further weakness likely to recall the May 24 low of $1.2555.

The 14-day Relative Strength Index (RSI) holds the bearish zone, still keeping the sellers’ hopes alive and kicking.

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.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork

Here’s the list of crypto exchanges that will support Terra’s LUNA hard fork

Cryptocurrency exchanges are on board Terra’s LUNA hard fork and Do Kwon’s plan for the Terraform Labs token’s rebirth. Do Kwon has garnered support from leading cryptocurrency exchanges for the new Terra chain. 

More Terra News

Breaking: Ethereum breaks below $1,900 as selling pressure accelerates

Breaking: Ethereum breaks below $1,900 as selling pressure accelerates

Ethereum dipped below the $1,900 support level over the past few hours. A decisive close below such a vital demand zone will put ETH at risk of a 38% correction toward $1,200. 

More Ethereum News

A big price move is coming for Binance Coin; here’s what to look out for

A big price move is coming for Binance Coin; here’s what to look out for

A brief technical and on-chain analysis on Binance Coin price. Here, FXStreet's analysts evaluate where BNB could be heading next. 

More Binance Coin News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos Ready - set - RALLY!

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Cryptos Ready - set - RALLY!

Bitcoin price, Ethereum and other cryptocurrencies are stabilising after the cryptocurrency space got slaughtered last week and two weeks ago.

More Bitcoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis