Big moves ahead for Cardano [ADA] or not?
October has brought on a bullish revival for the crypto market. But not for Cardano’s [ADA]. The asset’s price action has remained weak throughout the month as it decoupled from the rest of the market. Even as it held...
October has brought on a bullish revival for the crypto market. But not for Cardano’s [ADA]. The asset’s price action has remained weak throughout the month as it decoupled from the rest of the market. Even as it held on to the fifth spot on the leaderboard, ADA was the worst-performing large market cap crypto-asset.
Cardano has made several strides with regard to partnerships and integrations. Additionally, the network also revealed its new certification levels for the smart contract. But the developments have failed to charm the bulls as the crypto asset entered the fourth quarter of the year.
The major setback was ADA’s fall below the $2-level this month. The crypto was still down by 7.79% over the past week and was currently exchanging hands at $1.99. The latest charts revealed an uptick in the volatility of the ADA market. This could induce a swift move higher over the weekend, but there are other factors to consider.
ADA had been trapped in a consolidation phase and remained within the confines of a descending parallel channel since the beginning of this month. A breakout from this pattern tends to be on the upside. Hence, a bullish breakout could trigger a jump in its near-term price action.
The moving averages, however, did not depict a positive picture. In tandem with the falling price, the gauge between the 50 DMA [Pink] and 100 DMA [Blue] declined as both geared up for a bearish crossover. Meanwhile, the price candles remained above the 200 DMA [Yellow]. On the other hand, ADA’s low trading volume posed a threat to uptrend hints.
ADA Buy Signals: Will Bulls be in the Driving Seat?
The buy signals are yet to gain prominence. While the widening Bollinger Bands [BB] did provide a hopeful picture of increasing volatility, the daily Relative Strength Index [RSI] remained in the seller’s territory. Attempts for a breakout above the 50-median line failed. Interestingly, there is substantial sell pressure in the $2.14-$2.23 range, meaning the hike won’t be smooth. On the flip side, the Stochastic RSI, bounced back from the overbought conditions while undergoing a bullish crossover.
The above charts depicted an extended period of consolidation before a clearer trend emerges. Hence, Cardano investors anticipating big moves may have to wait. If the pattern formation results in ADA’s price taking off, the immediate resistance of $2.20 will come into play. Upon breaching this overhead level, the asset could then aim for other targets at $2.64 and $2.94 respectively.
Chayanika has been working as a financial journalist in the cryptocurrency and blockchain industry for almost three years. She has closely followed the growth and adoption of the sector since 2018. Her inclination lies in writing impactful, data-driven stories.
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