Cardano Token Price Analysis: ADA price is approaching resistance, will it give a breakout?

Cardano Token price is trading in a downward parallel channel.
The token has stormed past the 20 Exponential Moving Average, and it is moving up after retesting.
The pair of ADA/BTC is trading at 0.00002704 with a 1.39% increase in the market cap of the digital asset over the [ast 24 hours.

Cardano Token price has been trading downward parallel for the past trading days. The token is forming lower lows and lower high formations on a daily timeframe. The token recently broke out of 20 EMA, turning the short-term trend bullish. After the breakout, the token retests on 20 EMA and gradually moves up. The token is yet to give the breakout of 50 EMA and 100 EMA, which can act as resistance moving upwards. Cardano token price is trading at the upper band of the Bollinger band indicator. The Bollinger bandwidth is narrowing, indicating a big move on either side. Volumes have increased and are flowing from both buyers’ and sellers’ sides. If the bulls can take control, the token price can reach up to long term supply zone at $1.4, and if the bears take control, the token’s price can come thrashing down to long term demand zone of $1.04.

ADA Price is resting at a long term demand zone on a weekly time frame

On a weekly chart, Cardano Token price is seen taking support at the long-term demand zone of $0.901 – 0.908. At present, the token is in a consolidation phase on the weekly chart.

Relative Strength Indicator: RSI is trading at 41.38, approaching the halfway mark of 50. At present, RSI is also moving sideways. The 20 SMA has touched the RSI curve, and if the RSI curve can move above the 20 SMA, the token can break the consolidation. This can lead to a change in the momentum of the token to super bullishness.

ADA Price is showing U-shaped recovery off the demand zone on the daily chart

Cardano Token price shows a U-shaped recovery on the daily chart, and the technical parameters suggest the same.

Moving Average Convergence Divergence (Bullish): MACD indicates a bullish trend on the daily chart as it gave a positive crossover. The buyer’s signal line(blue) crossed the seller’s signal line (orange) on the upside, indicating a possible up move at the long-term supply zone of $1.04 on the daily chart.

Average Directional Movement Index: ADX was seen dipping below 20 and is at 17.20. As of now, ADX has turned sideways, thus halting the price movement indicating a possible bullish trend for the coming week. The token is still in recovery mode on the larger prospect.

Conclusion

Cardano Token price is recovering after bouncing off the demand zone. As of now, the token’s price is moving up steadily. If it remains the same, the token can soon reach the price of $1.60. If the token fails to hold at the current price, it can fall to $1.04.

SUPPORT: $0.98 – $0.104

RESISTANCE: $1.4 – $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.