Cardano (ADA) Inside An Accumulation Phase, Still Eyes $2.40

Cardano (ADA) is comatose at this stage as the price action hadn’t quite active moves due to the slow on-chain activity in the last few days. After the strong rally recently seen in ADA, it seems that the coin struggles to crack above $2.35 as it’s a high level of interest for sellers.

Moreover, the 200-period simple moving average at the H4 chart keeps capping further gains in the cryptocurrency, and the bullish steam is fading away. There is a rangebound construction below such a 200 SMA that is poised to unleash a strong move in the coming days.

Bullish Crossover Of SMAs In The Cards

In fact, the ADA coin had already formed a bullish crossover of the 200 SMA with the 50-period simple moving average, which could favor the upwards scenario for the crypto in the near term.

However, as the $1.95 level looms, it remains a critical hurdle to overcome for the bears, as they could strengthen further once the price pierces below that area.

Still, the H4 chart’s picture unveils some bullish signs like a formation of higher lows in the near term. Thus, it could eventually trigger a massive buying wave once ADA manages to consolidate above the 200 SMA with higher lows’ formations in-between.

Do Or Die’s Stage

Cardano’s coin should also develop another bullish formation, hopefully, a continuation pattern, above the highs of October 21 around $2.30 to make the bullish case the dominant one across the board.

However, once the price cracks below $1.95, it could surely open the doors for further losses that could lead ADA towards the lows of October around $1.81, followed by a critical barrier around $1.75.

For now, the RSI indicator stands in the negative territory, nearing the neutral zone, which could signal that ADA could extend a little bit more the rangebound ahead of the strong move. Such a scenario can be confirmed with the RSI slope passing through the 60 level.

This article was originally posted on FX Empire