Cardano price analysis: ADA forms sideways pattern above $0.38 support level

Cardano price analysis is neither bullish nor bearish for today, as price can be seen falling into a sideways pattern around the $0.40 mark. It could be argued that ADA bulls will be gaining momentum for the next move upward, and an immediate test of the $0.42 resistance could follow, however a decline down to $0.38 support could trigger further loss of market interest. The current support region has provided a crucial region previously in May 2018 and January 2021. Both instances provided a breakout for ADA price and bulls will be looking to pivot around this point to target the immediate resistance at $0.42.

The larger cryptocurrency market showed mixed signals over the past 24 hours, as Bitcoin trended sideways similar to Cardano, around the $20,500 mark. Ethereum dropped 1 percent to move down to $1,600, whereas major Altcoins showed consistent uptrends across the board. Ripple gained 1 percent to move as high as $0.46, while Dogecoin surged upwards once again to move up to $0.12. Meanwhile, Solana and Polkadot reached $32.68 and $6.65, respectively, recording minor increments each.

Cardano price analysis: Cryptocurrency heat map. Source: Coin360

Cardano price analysis: ADA remains above crucial moving averages as price reaches bottom

On the 24-hour candlestick chart for Cardano price analysis, price can be seen forming a bottom around the $0.40 mark with support set at $0.38. Trading volume has also been decreasing over the past 24 hours, which presents a weak sign for ADA bulls. However, price could yet test the $0.42 resistance as the 24-hour relative strength index (RSI) shows positive momentum at 53.85. Alternatively, a fall below the $0.35 mark could invalidate the bullish outlook for ADA.

Cardano price analysis: 24-hour chart. Source: Trading View

Price still sits above the crucial 9 and 21-day moving averages, and the 50-day exponential moving average (EMA) at $0.39. The daily moving average convergence divergence (MACD) is still bullish, but could soon be forming a lower high that could indicate a possible reversal if the trend continues. All in all, Cardano price seems to currently have been stuck within the $0.38 and $0.42 price range and a clear out from this range could attract new volume and expand further. A permanent move above the $0.42 resistance could still realise the bullish target for $0.5 in November.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Source: https://www.cryptopolitan.com/cardano-price-analysis-2022-10-31/