🔥🔥🔥 #cardano Faces Pressure Near 50-day SMA On Daily Chart; What to Do?
Cardano ($ADA ) is currently encountering resistance near the 50-day Simple Moving Average (SMA) on the daily chart, indicating a potential decision point for market participants.
For the third consecutive session on Wednesday, Cardano exhibited a bearish outlook on the daily chart. The bullish momentum, which had accumulated earlier in the week, proved unsustainable.
Presently trading within a short-term range of $0.42 to $0.52, ADA is experiencing resistance at the upper boundary of this range. The failure of the bulls to surpass this level highlights a deficiency in upward momentum. At the time of writing, ADA/USD is valued at $0.48, marking a 0.21% increase for the day. However, the 24-hour trading volume has declined by over 24% to $374 million, suggesting that the recent price increase may lack robustness.
Currently, ADA exhibits muted price action with no definitive directional bias. Should ADA manage to breach the 50-day SMA, it could potentially advance towards $0.51, and subsequently target the $0.56 high recorded on February 13. This perspective is reinforced by the Relative Strength Index (RSI), which remains above 50, indicating a bullish inclination.
If bearish sentiment prevails, ADA may decline to the immediate downside target of $0.45, as seen on May 17. This could affirm the range-bound market and drive the price further towards the critical support at $0.42.
In summary, Cardano (ADA) is at a pivotal juncture, characterized by a contest between bullish and bearish forces. Should the spot price decisively trade below the 50-day SMA, bearish momentum may dominate.
Technical Indicators:
- 50-day SMA: Positioned at $0.48, with the current price below this moving average.
- RSI (14): Trading above 50, signaling a bullish bias.
Support and Resistance Levels:
- Support 1: $0.46
- Support 2: $0.42
- Resistance 1: $0.50
- Resistance 2: $0.52
Source - thecryptobasic.com