ADA Bulls Need to Defend This Level to Prevent Further Downside (Cardano Price Analysis) - GKnews.net

ADA Bulls Need to Defend This Level to Prevent Further Downside (Cardano Price Analysis)


ADA had a good attempt to break away from the key resistance this week but was eventually pushed back by sellers.

Key Support levels: $0.50, $0.44

Key Resistance levels: $0.55, $0.66

With the hopes of a sustained rally in question, the bulls will have to defend ADA again at the $0.50 support level. The breakout turned into a fake rally, and the key level at $0.55 is now resistance again. Buyers have to do their best not to let the price fall under the ascending triangle (in blue), or bears may take full control of the action.

ADAUSDT_2022-08-18_13-03-37
Chart by TradingView

Technical Indicators

Trading Volume: The volume during the break above $0.55 was good, but this quickly shifted to sustained selling over the past few days.

RSI: The daily RSI is falling and is approaching the mid-point at 50 points. This most recent rally failed to take the RSI close to 70 points (overbought area). This showed weakness on the buy side.

MACD: The daily MACD is at most a day away from a bearish cross. If this happens, then the sellers will likely be the ones in charge for a while.

ADAUSDT_2022-08-18_13-02-13
Chart by TradingView

bias

The bias for ADA is bearish.

Short-Term Prediction for ADA Price

The optimism around ADA was short-lived, and the price quickly reverted back, losing most of its recent gains. This turned the bias bearish, and the key support levels are found at $0.50 and $0.44. If buyers cannot stop the price from falling below the ascending triangle, then the correction will be more likely to continue.

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Cryptocurrency charts by TradingView.



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