• Cardano price rebounds on Saturday but is not out of the woods.
  • Oversold RSI cautions ADA bears, as price wavers in a bearish channel.
  • $1.52 is a tough resistance while $0.93 offers strong support to ADA price.

ADA price is attempting a bounce from weekly lows so far this Saturday, snapping a two-day downtrend. The broad upswing seen across the crypto market is coming to the rescue of ADA optimists.

Cardano price is finding support from CryptoCompare’s recent Asset Report, which showed that the number of active addresses on the Cardano Network quadrupled from October to November, as on-chain activity picked up and transaction fees on the network dropped from $0.45 to $0.38 on average.

Despite the encouraging news, a convincing recovery appears elusive, as the technical setup continues to remain in favor of the bearish traders.

Cardano price could likely rebound amid oversold conditions

As observed on the daily chart, ADA price is trading at the midpoint of a one-month-long falling channel, which aligns around $1.20.

The 14-day RSI is seeing a fresh uptick while still within the oversold territory, backing that a rebound in ADA price.

The recovery momentum, however, could gain traction if ADA bulls recapture the $1.40 resistance on a sustained basis.

Buyers will then challenge the powerful upside barrier at $1.52, which is the confluence of the falling trendline resistance and the bearish 21-Daily Moving Average (DMA).

A daily closing above the latter will confirm a falling channel breakout, opening doors towards $1.85, where the 50- and 200-DMA hang around.

ADA/USD: Daily chart

However, should the bulls give in to the death cross-driven bearish momentum in play, the December 4 lows of $1.13 could cap the immediate downside.

Further south, sellers will look to test $1.00, July lows, below which the falling trendline support at $0.93 will be the last line of defense for ADA bulls.

All in all, the path of least resistance appears to the downside for ADA price, with every bounce seen as a good selling opportunity for the traders.

 

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

Christie’s moves on-chain with NFT auction platform on Ethereum

Christie’s moves on-chain with NFT auction platform on Ethereum

After a series of successful high-priced nonfungible token (NFT) sales, Christie’s has launched its own dedicated NFT "on-chain auction platform," allowing auctions to be carried out fully on-chain on the Ethereum network.

More Cryptocurrencies news

Binance Coin price could shed more than 10% if this trend continues

Binance Coin price could shed more than 10% if this trend continues

Binance Coin price has been on a downtrend for quite some time and has intensified after the recent sell-off in Bitcoin price. Investors need to pay close attention to the BNB’s moves over the last three weeks, which revealed a bearish setup.

More Binance Coin news

Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price failed and was rejected at the 38.2% Fibonacci retracement level. There is a significant downtick in bearish momentum amidst the recent decline. Invalidation of an uptrend potential depends on the swing low at $1,006 remaining untagged.

More Ethereum news

Cardano (ADA) Price Prediction: A sweep of the summer lows in the making

Cardano (ADA) Price Prediction: A sweep of the summer lows in the making

Cardano price congestive nature continues during the final week of Sept. Despite the rest of the market experiencing volatile moves this week, the price has been quite stagnant. ADA currently auctions at $0.44 as the bears have prompted a 4% drop in market value.

More Cardano news

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.

Read full analysis

BTC

ETH

XRP