Sophia's Blog

Sophia's Blog

Cardano [ADA]: Failing to breach $1.48 may invalidate the bullish thesis

cardano

After rallying for the past two weeks, Cardano’s [ADA] uptrend appears to have taken a breather. Several top assets took a tumble as the collective crypto market shed almost 5% gains. Closely mirroring Bitcoin’s price action, ADA has also enjoyed a steady rise from similar lows at the end of July as well. It broke a crucial resistance during the weekend before retracing slightly as volatility in the coin market also took a hit. Despite the losses, its weekly gains still stood at 10.20%.

Over the past 24-hours, Cardano [ADA] fell by 3.66% which drove its price to $1.42. At the time of writing, the digital asset registered a market cap of $45.68 billion and a 24-hour trading volume of $1.82 billion.

The volatility in the market is yet to back the upward trajectory. ADA happens to be one of the few crypto-asset that has not yet sustained a death cross following the mid-May price crash.

While the 100 DMA [Blue] continued to hover above the Cardano price candles, the 50 DMA [Pink] and the 200 [DMA] were moving beneath them. Interestingly, the gauge between the two moving averages has reduced significantly even with the increasing bullish momentum over the past two weeks.

The Chaikin Money Flow [CMF] shot up after ADA’s price broke a multi-week high depicting an inflow of capital into the coin market. The Klinger Oscillator [KO] projected a contrasting trend as it geared up for a bearish crossover in the near term. The Relative Strength Index [RSI], on the other hand, was close to the overbought zone above 65, a level that was last seen almost three months ago. This was indicative of an increasing sentiment of buying pressure in the ADA market which could further help in exploring the crypto-assets upward potential.

Cardano needs to steer clear of $1.48 to target crucial resistance areas of $1.84, and $2.30 respectively. The support l levels of the asset stood firm at $1.03, and $0.84.

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