ADA Price Analysis: Critical time for Cardano as bulls need to hold crucial support

•ADA/USD is currently priced at $0.91 and has decreased by 5.04% over the past day

•The trading volumes have decreased by 34.45% over the past day

Short Term View: Cardano at crossroads as bears are still lurking

The Cardano price today is $0.913019 USD with a 24-hour trading volume of $1,107,013,074 USD. Cardano is down 5.04% in the last 24 hours. The trading volumes have decreased by a significant margin in the last 24 hours, which suggests the bears are still lurking and are keeping up the pressure. The Volume to Market Cap Ratio, on the other hand, stands at 0.06231.

The coin is trading below the 50 SMA on the 4 hour chart which could be a major deterrent for the upward rally. If the bulls are able to sustain the momentum, they would encounter resistance at $1,after which they could target the resistance placed at $1.2. In the event of the bears taking over, the support level placed at $0.80 becomes crucial for the bulls to hold onto. The lowered trading volume is another matter of concern. But in the short term, a huge buying volume has been accumulated since the early trading hours and hence a decent jump could be imminent.

Long Term View 

While indicators for Cardano coin are turning bullish, the price action lacks momentum to propel the cryptocurrency higher at the time of writing. The daily RSI failed to break above 50 and stands at 42.10. If Cardano price does not break above $1, the RSI will confirm a lower high and potentially result in a stronger pullback. A bullish crossover was recently observed on the MACD indicator but the move is yet to translate into an increase in prices. The bulls need to be wary of the bears as despite the indicators suggesting otherwise, there is a serious lack of momentum for Cardano Coin to continue its rally.

Conclusion 

Cardano price witnessed significant gains in the past week and  it looked like the bullish rally would continue. However, the bears look to have stepped back into the market and brought the upward momentum to a screeching halt. The crucial support level needs to be tested and sustained to correct the immediate bearish pressure and bring the coin back on the recovery trend. Once it is out of the way, the upside is likely to gain traction with the next focus on $1 and $1.2 resistance levels.

Support: $0.80

Resistance: $1-$1.2

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.