Cardano Price Analysis: Can ADA continue with its recent momentum lower to a psychological level $1.0

• Cardano coin is in the process of forming a double top formation on the hourly price chart after a sharp recovery.
• Short sellers are approaching the 200-day moving average as a bearish barrier on the daily price graph.
• The Cardano coin belonging to the bitcoin pair is trading down 2% at 0.000002525 satoshis.

Cardano coin price failed to sustain the $1.2 resistance level last week, with HOLD price action forming a double top formation below the resistance. However, the bulls are still bullish on the ADA coin in the loggerhead time frame. Consequently, the coin has retrieved around 60% from the $0.80 level to its weekly high.

However, the bears have been looking aggressive since last night; Therefore, ADA is down 4.8% to $1.15 at the time of writing. Meanwhile, ADA price declined below the upward trend line after rejection from the $1.2 resistance level. Furthermore, the Cardano coin belonging to the bitcoin pair is trading down 2% at 0.000002525 satoshis.

The trading volume is not high enough to push the price of the ADA coin above the $1.2 resistance level, which could be the most important reason beyond its failure to sustain. However, the coin saw a 35% drop in volume last night. Meanwhile, the volume to market capitalization ratio is 0.03587.

The 200 EMA is a significant bullish barrier for ADA and the most recent attempt to retest the 200 EMA seems to have failed. Now buyers are trying to prevent themselves from lowering the 100 and 50 EMAs.

A spike in the RSI favoured panic sellers

The RSI is near the halfway mark after hitting the door of the overbought zone on the daily price graph. However, the RSI is following a descending trend line and historical data is providing a bullish trendline.

The Schaff Trend Cycle (STC) is above the upper band at the 100-point, which represents a bullish move in the ADA coin price.

Conclusion

The chances of Cardano price holding above the 100 EMA are very slim as per the current conditions. Buyers need to grab the ongoing moment of ADA and push the asset above the nearest bullish barrier. Conversely, the $1.0 level is the most important level to watch.

Support level –  $1.0 and $0.80

Resistance level – $1.2 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.