Cardano [ADA] has faced tough tailwinds this month. After falling from the fourth spot, ADA has been struggling to overcome a crucial resistance level. Bitcoin’s -[BTC] bounce back to the coveted level of $50k has had little impact on the crypto-asset which slashed all of its weekly gains. In short, ADA has been one of the worst-performing assets among the top 10s.
Over the past 24-hours, Cardano [ADA] depreciated by 3.37% which pushed the token to $2.14. At the time of writing, the crypto-asset registered a market cap of $69.15 billion and a 24-hour trading volume of $2.20 billion.
Cardano [ADA] Daily Price Chart
ADA’s price swayed between the trendlines of a descending channel pattern on the daily chart. The bullish breakout following the closure of the pattern formation stalled as profit-taking engulfed the market. Low volatility and trading volume further hindered upward attempts. As a result, the crypto-asset appeared to be stuck in a consolidation phase.
The 50 daily moving average [Pink] moved above the ADA candles following the mid-September crash and so far the price has failed to reclaim its foothold above it. Despite hovering below, the upward sloping 100 [Blue] and 200 [Yellow] daily moving averages could threaten the signs of an uptrend.
Hence, Cardano now faces a sturdy roadblock to tackle before the bullish target can be achieved.
The technicals remained bleak. For instance, the Chaikin Money Flow [CMF] settled below the half-line as capital outflows intensified from the coin market. The daily Relative Strength Index [RSI] was also struggling below the 50-median line after sell-pressure took over ADA’s price. On the other hand, the MACD exhibited minor hints of price recovery after forming a bullish crossover. However, the momentum remained weak and sellers continued to dominate the market.
Cardano [ADA] needs to breach the $2.4 level in order to climb higher and target critical resistance levels of $2.6 and $2.9 respectively. The support points for the price were found to be at $1.9 and $1.68.