Cardano [ADA] and the rest of the altcoin market witnessed a strong rally seen that hinted at the revival of the bull market. The double-digit hike was driven primarily by Bitcoin’s [BTC] uptrend which bounced from $29,000 to $40,000 in less than 48-hours. However, the gains reversed quickly and the market was back near the previous rangebound levels. As a result, ADA’s volatility took a hit depicting a potential period of market stagnation in the coming days.
Cardano [ADA] plunged by 9.68% over the past day which pushed its price to $1.25. Despite the pullback, the crypto-asset weekly gains still stood at around 18%. At the time of writing, ADA’s market cap was found to be at $39,92 billion while registering a 24-hour trading volume a $2.53 billion.
Cardano [ADA] Price Daily Chart:
The ADA candles briefly surpassed the moving averages on the daily framed chart a the price grew past a long-term descending trend line in play since mid-May. However, the downsloping 500 DMA [Pink] and the increasing 200 DMA [Yellow] depicted a probability of a death cross in the near term. If this materializes, ADA could descend to new lows.
Additionally, the low trading volume in the coin market failed to support the uptrend.
Cardano’s Bullish Momentum Fumbles
A weak bullish momentum was seen by the green closing bars of the Awesome Oscillator [AO]. The MACD also noted a minor uptick in terms of interest in the market. The RSI also bounced off the oversold territory and was currently flirting with the 50-median line indicating a rising sentiment of buying pressure in the market.
Looking ahead, Cardano’s might continue its uptrend in the short-term before sell pressure sinks in. In this case, ADA is likely to face significant resistance from levels $1.48, $1.84, and $2,30. The support levels for the crypto-asset, on the other hand, stood firm at $1.03, and $0.84 respectively.