Chart by TradingView
Cardano had an excellent week after a significant rally. However, the momentum appears to be stalling now.
Key Support levels: $0.38, $0.33
Key Resistance levels: $0.42, $0.50
As soon as ADA moved above $0.40, the bulls were unable to take the price much higher as they were stopped by the key resistance at $0.42. The support is at $0.38, and buyers managed to use this level as a pivot for their most recent rally. Should they fail to break the resistance, then ADA could fall back to the key support.
Trading Volume: The volume has been declining ever since ADA broke above $0.40. This is not encouraging for bulls.
RSI: The daily RSI remains above 50 points but is struggling to move higher.
MACD: The daily MACD is bullish. However, the histogram has made a lower high which could signal a possible reversal in the current trend if this continues.
The bias for ADA is neutral.
ADA appears to be found at a crossroads, with the price stuck between $0.38 and $0.42. A clean break from this range is necessary to allow the price to attract new volume and expand further. The weekly timeframe remains bullish. Hence, ADA has a better chance of moving above the key resistance and towards half a dollar in the future.
