Cardano Price Forecast: ADA stalls four-day losing streak, but not out of the woods yet

  • 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.

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