Cardano Price Analysis: ADA Appears to be in Recovery, but it is still in The Parallel Channel

• During the sharp-seeling, bears succeeded in breaking the crucial support level of $1.0, resulting in the Cardano coin price denoted the 52-weeks lowest level.
• The ADA coin has continued to downtrend into a parallel descending channel for more than 3-weeks.
• The ADA/BTC pair price is trading at 0.00002301 satoshis, increasing by 5.4%.

Since its all-time high of $3.0, the ADA (Cardano) price has been under selling pressure. The ADA price climbed somewhat on Tuesday. ADA has been trading in a pretty limited range since hitting a low of $0.92 in January. However, selling pressure on the Cardano price remained intense, prompting ADA to hit fresh 2022 lows of $0.81 in February. At the time of writing, the ADA cryptocurrency price seemed to be up 6.4% at $0.898.

Over the past several days, ADA coin price has been moving downwards in the parallel falling channel. On 24-February, bears tried to break down the following channel, but they failed on this action. However, the coin has lost 36% trading volume over the past 24-hours. Meanwhile, the volume to market capitalization ratio is  0.05377. Moreover, the ADA coin price with the Bitcoin pair is trading at 0.00002301 satoshis, increasing by 5.4%. Same as the ADA/ETH pair price is trading at 0.0003244 ETH.

The ADA coin has significant resistance at $1.0, and the recent low could act as a support. Meanwhile, the considerable moving averages (including 20,50,100 and 200 MAs) are far above the current price of the Cardano coin in terms of the daily price chart.

Bull’s eye on psychological $1.0 level above parallel channel

The relative strength index seems to be bullish after dipping into oversold territory in the context of the daily price chart. But still, the daily RSI is below the half-line (50-mark). 

The moving average convergence divergence is moving downwards in the negative region after a bearish crossover over the daily price chart. Moreover, the average directional index is slightly bullish, suggesting the neutral momentum for the ADA coin. 

Conclusion 

Bulls have a fantastic opportunity near the demand zone to drive the ADA price higher and break through the psychological round milestone of $1.0. On the other hand, if Cardano’s price fails to hold the session low, it may revisit the new yearly lows of $0.74. A daily closing below the indicated level may open the doors to $0.67.

Support level –  $0.80 and $0.50

Resistance level – $1.0 and $1.6

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.