As a researcher with a background in technical analysis, I have closely monitored the Cardano price action for some time now. Based on my observation and interpretation of the given chart and information, I believe that the ADA coin is currently trading within a consolidation phase after witnessing a significant correction from $0.81 to $0.426.
In simpler terms, the price of Cardano‘s cryptocurrency, ADA, has been finding support at $0.426 in its daily chart. This level has seen several bounces from buyers within the past month, suggesting a potential local minimum. However, with market uncertainty persisting, ADA has continued to face downward pressure due to an accumulating supply above this price range, potentially extending the ongoing correction trend.
Cardano Price Prediction: Key Levels to Watch in May
I’ve noticed that the price of Cardano has been correcting for the past two months, dropping from $0.81 to a support level at $0.426. This bearish trend resulted in a significant loss for me as an investor, amounting to $47.5. However, recently, the situation seems to have shifted as buyers are aggressively defending the $0.426 floor, causing the price to move sideways instead of continuing its downward trend.
As an analyst, I’ve observed that Bitcoin‘s price stabilizing around $60,000 has caused heightened volatility among major altcoins like Cardano. For over two weeks now, the ADA token has been consolidated within a narrow range of $0.476 and $0.42.
A look at the day-to-day price chart reveals that the 20-day moving average (EMA) acts as a flexible barrier for crypto purchasers, with the slope of this EMA serving as resistance. Since late March, every upsurge in ADA‘s price has encountered significant selling pressure around this EMA level.
As a Cardano investor, I’m observing that the coin is currently priced at $0.44, representing a 1.4% increase in value during the day. If this upward trend continues and adds another 3.5%, the 20-day Exponential Moving Average (EMA) will come into play at $0.46. However, the recent bearish crossover between the 50-day and 200-day moving averages may encourage sellers to push the price below the current support level.
As a researcher studying the price trends of a particular asset, I believe that a breakthrough below the $0.426 support level could initiate a correction towards lower prices. Specifically, I anticipate this downtrend to reach $0.4 first, followed by a possible further decline down to $0.37.
Technical Indicator:
- Relative Strength Index: The higher low formation in the daily RSI slope as the ADA price hovers above $0.426 indicates the increasing buying pressure at this slope.
Exponential Moving Average: A possible breakout from the 20-day EMA slope will be an early sign of trend reversal.
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2024-05-13 18:41