Cardano Price Prediction: Rejection at 100-HMA calls for a test of the $1 mark
- ADA/USD’s bias shits to the downside after rejection once again at 100-HMA.
- Cardano charts a rising wedge breakdown on the hourly chart.
- Bears test 50-HMA while the RSI stays within the bearish zone.
Cardano (ADA/USD) extends Friday’s sell-off, as the bearish momentum picks up pace on Saturday, with deeper losses likely on the cards.
The fourth most widely traded crypt currency has lost 19% of its value over the past seven trading sessions. It's worth noting that the token has gained 720% since the start of the year amid a broad crypto market rally.
ADA/USD: Eyes $1 on a sustained break below 50-HMA at $1.1445
As observed on the hourly chart, ADA/USD’s outlook appears bearish in the near-term, as the pair has confirmed a rising wedge breakdown earlier this Saturday.
The natural tendency of this formation is to yield a downside break. Therefore, the sellers remain in control, although they need to find a strong foothold below the downward-sloping 50-hourly moving average (HMA), now at $1.1445.
Acceptance under the latter could trigger a sharp sell-off towards the $1 mark, where the pattern target coincides.
The Relative Strength Index (RSI) looks south, below the midline, suggesting that there is a scope for additional losses.
The sentiment around the spot turned in favor of the bears after the price failed once again at the bearish 100-HMA, currently at $1.1881.
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ADA/USD: Hourly chart
Alternatively, the pattern support now resistance at $1.1737 could check any upside attempts.
The bearish bias will remain intact until the ADA bulls break above the abovementioned 100-HMA barrier on a sustained basis.
The next bullish target awaits at $1.2179, the horizontal 200-HMA hurdle.
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.
