Cardano May Touch $0.30 But These Price Levels Are Vital For The Coin

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Car­dano had attempt­ed to recov­er on its chart in the past week, but the bulls could not sus­tain the attempt­ed upward move­ment. Over the last 24 hours, ADA dipped close to 9%, and in the pre­vi­ous week, it reg­is­tered a loss of 1%.

At the moment, ADA is mov­ing clos­er to its pre­vi­ous low as demand for the alt­coin has remained bleak. The tech­ni­cal out­look of the ADA has point­ed towards the bears gath­er­ing strength. The buy­ing strength of the alt­coin has declined con­sid­er­ably ever since ADA attempt­ed to move upwards on the chart.

With Bit­coin unable to break above the $24,500 mark, many alt­coins have suf­fered on their respec­tive charts in the last week. As demand fell, so did accu­mu­la­tion. ADA could drop to $0.30 before the price increas­es over the sub­se­quent few trad­ing sessions.

If Bit­coin price begins to recu­per­ate over the sub­se­quent trad­ing ses­sions, ADA might move close to $0.33 and trade with­in a range before it tries to break out of the field.

Cardano Price Analysis: One-Day Chart

Cardano
Car­dano was priced at $0.32 on the one-day chart | Source: ADAUSD on TradingView

ADA was trad­ing at $0.32 at the time of writ­ing. The alt­coin has been under sell­ing pres­sure in recent trad­ing ses­sions, bring­ing the price down to $0.32. In the last week, ADA man­aged to dri­ve its price from $0.30 to $0.35.

At the moment, Car­dano is inch­ing clos­er to $0.30. A fall from the $0.32 lev­el will make ADA fall below $0.30, and the alt­coin would rest at $0.28. If Car­dano trades above the $0.30 mark, the coin could pro­pel to $0.34.

Over­head resis­tance for the alt­coin was at $0.33 and then at $0.35. These two lev­els above will act as vital price lev­els for ADA. The coin remains near $0.35; it can shoot past the $0.36 mark. The amount of ADA trad­ed in the last ses­sion declined, dis­play­ing sell­ing strength.

Technical Analysis

Cardano
Car­dano not­ed a decline in demand on the one-day chart | Source: ADAUSD on TradingView

Traders have lost con­fi­dence in the asset. ADA reg­is­tered a fall in buy­ing strength as the coin depre­ci­at­ed fur­ther. The Rel­a­tive Strength Index was below the half-line, with a downtick sig­ni­fy­ing a fall in pur­chas­ing pow­er on the one-day chart.

In accor­dance with the same, Car­dano was below the 20-Sim­ple Mov­ing Aver­age line (red), indi­cat­ing that the price was in the sell­ers’ con­trol. The sell­ers were dri­ving the price momen­tum in the market.

Cardano
Car­dano dis­played buy sig­nals on the one-day chart | Source: ADAUSD on TradingView

Despite the fall in price, ADA depicts buy sig­nals on the one-day chart. The Mov­ing Aver­age Con­ver­gence Diver­gence indi­cates price momen­tum and trend rever­sal. The indi­ca­tor formed green sig­nal bars, which are tied to buy signals.

These sig­nals could mean that prices fall over the next trad­ing ses­sion and recov­er in the sub­se­quent trad­ing ses­sions. The Direc­tion­al Move­ment Index (DMI) demon­strates the price direc­tion and strength of the same.

DMI was neg­a­tive as the ‑DI (orange) line was above the +DI (blue) line. The Aver­age Direc­tion­al Move­ment was slop­ing down­ward, which meant the cur­rent price trend was los­ing strength.

Fea­tured Image From UnSplash, Charts From TradingView.com

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