Price Analysis

Cardano (ADA) Trades Above Weekly Low Yet Faces Trend Aversion

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  • Cardano, at the time of penning down this analysis, was trading at $0.0273 after accumulating around the same price zone since the mid of the previous trading session
  • ADA/USD had recorded a weekly high at $0.0341 just when the market ramped up, and Bitcoin had hit $6.9k
  • The pair lacks to retain the support from the 200-day and 50-day moving average with rising volume bars as the coin settled downsides

ADA price descends after the weekly high and has marked a 20% loss in just 3 days as the Coronavirus pandemic resulting global crisis, and recession worsens. After an illusionary trading session towards the end of the previous week, the global crypto market turns red, again, and BTC price nosedives below $6k.

Cardano Price Analysis

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ADA/USD Chart By TradingView

Analyzing the price movement of the last week, we see that Cardano price has been experiencing a strong trend aversion as it faces a dearth of momentum. ADA coin price notably falls below the weekly high and is currently trading below $0.030 and $0.028. However, we had seen an unprecedented growth in the volume bars when the coin was gaining momentum and support. Sooner did we realize that the weekly high was an illusion when the volumes collapsed again, leading to a lack of support.

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Although the price of Cardano is facing a lack of steady support and momentum, the coin has settled above $0.025, which is the major weekly support. Aligning the same, the major resistance lies at $0.028 and $0.030.

The technical indicators do not frame a positive picture as the MACD of the ADA coin has lost the traction and turns flat with the signal line due to price accumulation.

Similarly, the RSI of the coin is at 39.97 and is nearing the major support at 30 or the oversold region as liquidation intimidates strong sell-off.

Mehak Punjabi

Mehak Punjabi is a post graduate in MBA with specialization in Finance and has joined CryptonewsZ with a skill building view in the world of cryptocurrency and blockchain. She is dynamic and a quick learner with a hold on financial analysis.

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