- 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.
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.
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.