• 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

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price shows compression of two Simple Moving Averages as price consolidates. APE price shows bullish re-entrance on the Volume Profile pattern, but traders should steer away from being early buyers. Invalidation of the bear trend remains at $6.15.

More ApeCoin news

All you need to know about Cardano’s Vasil hard fork and how ADA price will react

All you need to know about Cardano’s Vasil hard fork and how ADA price will react

Cardano price seems to be preparing for massive gains as Vasil hard fork takes one step closer to becoming a reality. In a recent Twitter thread, IOHK, the developers behind Cardano announced the launch of Cardano node 1.35.0 on June 25.

More Cardano News

What’s next for Polygon’s MATIC price after rallying 90%

What’s next for Polygon’s MATIC price after rallying 90%

Polygon’s MATIC price coils just below a triangular barrier that sent the digital asset into the low $0.30 zone during the third week of June. Since the low of $0.316, the bulls have managed to recover 90% of losses, trotting impulsively through the $0.30, $0.40, and $0.50 levels. 

More Polygon news

Terra’s LUNA price finally shows the buy signal you’ve been waiting for

Terra’s LUNA price finally shows the buy signal you’ve been waiting for

Terra’s LUNA price has investors enthralled as the LUNA price has suddenly risen from the shackles it has been held captive by. Throughout the entire third week of June, the bulls saw no hope as the LUNA price traded tortoise-like just below the $2.00 barrier. 

More Terra news

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP