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.
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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.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
