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Elevenews

02/09/2022

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Cardano Price Analysis: $1.2 Fallout Threatens ADA Price To Retest $1 Support Again; Shall You Buy?

The overall trend for the ADA/USD pair is still bearish. The buyers rebounded the coin from the $1 mark, indicating a 13% gain in the last six days. However, the buyers failed to sustain the $1.2 breakout, and the resulting bull...

Cardano Price Analysis: $1.2 Fallout Threatens ADA Price To Retest $1 Support Again; Shall You Buy?

The overall trend for the ADA/USD pair is still bearish. The buyers rebounded the coin from the $1 mark, indicating a 13% gain in the last six days. However, the buyers failed to sustain the $1.2 breakout, and the resulting bull trap suggests the price would sink to $1 support. However, if buyers defend the bottom support, it indicates the bulls are buying at this dip.

Key technical point

  • The ADA price resonating in a rising channel
  • The ADA/USD price facing strong resistance at the 50-SMA line
  • The intraday trading volume in the ADA coin is $2.39 Billion, indicating a 41% hike

Source- Tradingview

During the last two weeks, the Cardano (ADA) price wobbled in a narrow range stretching from $1 to $1.125. On February 4th, the coin buyers gave a decisive breakout from the overhead resistance, indicating a recovery rally.

The sustained buying surged the alt to the immediate resistance at $1.2, preparing for another breakout. However, the sellers mounted stiff resistance at this level and rejected the coin price with a long wick candle.

The down-sloping 50 and 100-day SMA indicates the bears are dominating. Moreover, these two EMA lines are majorly rejecting the downtrend rallies. The Stochastic RSI shows a bearish crossover of the K and D lines, indicating a sell signal for crypto traders.

A Rising Channel Emerges From $1 Support

Source- Tradingview

On the 4-hour chart, the ADA/USD pair provided a breakout and candle closing above the $1.2 resistance. The altcoin was going through a retest phase, looking for sufficient demand. However, the buyer failed to sustain at this level, resulting in a fallout.

This bull trap could slump the coin back to the $1 mark, and any further price drop could result in a downtrend continuation. However, the chart shows the formation of a rising channel pattern, which could provide mid-way support to altcoin.

  • Resistance levels- $1.2, and $1.4
  • Support levels-$1.12 and $1

News Source

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ORIGINAL SOURCE

https://elevenews.com/2022/02/09/cardano...

Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


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