After recording an all-time high of $3.10, Cardano entered a correction that has been ongoing for 200 days now. Meanwhile, bad news, such as the delisting from the eToro exchange, has become a catalyst for further price retracements. Despite rumors of a burn mechanism rollout, there has been no significant backlash.
technical analysis by grizzly
Daily chart:
On the daily time frame, ADA is trading in a descending channel (marked in yellow). During the downtrend, the price has yet to form a higher high, and the red Ichimoku cloud has been the main obstacle. The first major challenge is crossing the $1 (marked in blue) resistance, which is pushing the price into the cloud and could create a lot of volatility.
If Cardano breaks out of this area, the dynamic resistance at $1.2 could be the next challenge. The stable support at $0.75 is also an area that the bulls have defended several times.
RSI-14D: Entered bullish zone and is testing a downtrend line.
4 hour chart:
On the 4-hour time frame, a short-term uptrend formed by creating higher highs and lows was halted after hitting the EMA 200. A MACD divergence also signals a short-term correction. If it continues, support lies first at $0.85 and then at $0.78. If the bulls fail to defend these levels, things will go from bad to worse.
short term resistance: $0.9 and $1
short term support: $0.85 and $0.78
PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to get up to $7,000 on your deposit.
Disclaimer: The information found on Cryptopotato is that of the cited authors. It does not represent the opinion of Cryptopotato whether to buy, sell or hold any investment. You are advised to do your own research before taking any investment decision. Use the information provided at your own risk. See disclaimer for more details.
Cryptocurrency charts by TradingView.