Cardano (ADA) Bulls tag strong against bearish reversal to overturn yesterday’s 12% loss

TL;DR Breakdown

• Cardano  broke above the 200-day exponential moving average at $1.71 
• ADA is undertaking a downswing with a high at $1.77 and a long red candle to $1.70

Cardano price analysis: General price overview

Cardano’s price today broke above the 200-day exponential moving average at $1.71 even after undergoing a sell-off of 12% on yesterday’s daily chart. The coin was rejected at $1.77 during the early morning hours after trending along a rising wedge. However, the wedge was cut short by a descending triangle with support at $1.74, where buyers consolidated enough strength to push the price to an intraday high of $1.78. 

However, the bulls were not strong enough to sustain the price at $1.78, whereby they found a lot of resistance from sellers. As a result, further weakening the price of Cardano towards $1.75 and slightly above the major support on the 1-hour chart.  

At the time of writing, ADA is undertaking a downswing with a high at $1.77 and a low hovering around $1.75, where a long red candle is attempting to crash the major support line at $1.74. The bears have already taken over and are moving further away from the 50-day moving average at $1.766.  

Furthermore, there is a bearish MACD crossover on the same 1-hour chart, which suggests that the price is heading towards the oversold region, which is no good sign for the bulls who must consolidate support from the broader market pull off the descending channel. A possible breakout above the height of the triangle at $1.77 could have the price of the coin rally from the 4-hour bottom of $1.67.  The bulls are betting on an imminent relative strength index that has already adjusted itself slightly towards 41, suggesting a positive buy signal. However, we can only deduce the market as bearish for now. 

Cardano Price Analysis: Cardano price movement in the last 24 hours

Cardano (ADA) opened the daily chart with an ascending channel after closing yesterday’s chart within a declining channel that ended at $1.69. ADA maintained a momentum towards $1.77 before struggling with selling pressure and correcting backward to $1.74, where it formed support. At this point, buyers consolidated enough strength, which catapulted to the daily high of $1.78 within a rising wedge pattern.  The opening price of today’s daily chart is also the intraday low, which suggests that buyers are above their best to take control of the price after yesterday’s bearish bottom. 

Source: Tradeview

Cardano 1-hour price chart

During press time, Cardano (ADA) is trading at a price of $1.71 after breaking below the major support at $1.74 on the 1-hour chart. If the buyers are unable to recover, the next immediate support lies near $1.653 and a demand zone of $1.488 and $1.566. On the other hand, if the RSI will hold, buyers might enter the market and catalyze a +10% gain, which will rally Cardano to $1.83. 

Source: Tradeview

Conclusion

Cardano’s price and the performance of a couple of other coins tumbled downwards following Elon’s remarks on breaking up with Bitcoin.

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