Cardano [ADA] has managed to position itself as the fifth-largest cryptocurrency by market cap on the leaderboard after outperforming several top tokens over the past several weeks. It took a breather before gathering steam for its next move towards the top.
The crypto-asset plummeted shortly after its Coinbase Pro listing incurring a double-digit loss which brought its weekly gains to 12.05%.
Cardano [ADA] found to have been consolidating despite being down by 3% over the past day. It was now exchanging hands at $1.15 as the bulls continued to defend an important area of support. The crypto-asset registered a market cap of $37.1 of billion and a 24-hour $5.21 billion, at the time of writing.
Cardano [ADA] Daily Chart:
The volatility in Cardano’s chart has noted a significant decline depicting a consolidation phase. But ADA price candles formed a bearish ascending channel on the daily chart as the coin. The formation of this bearish pattern did not bring good news for the coin and suggested a potential dip upon completion.
The moving averages, however, continued to favor the bulls. Firstly, the gauge between the two DMAs remained consistent with the 50 DMA [Pink] hovering above the 100 DMA [Blue]. Secondly, both the DMAs were below the ADA price candles supporting the coin from further downturn.
On Balance Volume [OBV] has been treading high since the mid Feb this year when it broke out past $0.50. The buying volume remained unfazed even as Cardano was turned down several times after forming a local top. This was indicative that sellers were unlikely to force prices beneath $1 level.
The MACD, however, underwent yet another bearish crossover after hinting on a positive revival. The RSI declined in tandem with the price action even as it held its fort above $50. It also formed a bearish divergence with lower high matching corresponding higher highs on the price.
Cardano could face a decline in the near-term which could prompt the crypto-asset to test support areas of $1.02 and $0.8 respectively. The resistance areas, on the hand, were found to be at $1.29 and $1.38 respectively.