• Fri. Jul 12th, 2024

ADA Eyes a Plunge towards $1.85 as Bulls Encounter Stiff Resistances



Sep 26, 2021
  • ADA’s road with few challenges seems the downside one.
  • Cardano’s technicals suggest weaknesses in the altcoin.
  • Bears target a break under $2 towards 100 DMA near $1.85.

Sunday actions have ADA on a slippery road again, starting the new week with weak price movements. For now, ADA bulls appear exhausted to record recovery actions. Meanwhile, ADA/USD noted a temporary recovery on Saturday after registering wild moves on Friday, testing the vital psychological level at $2.

However, Cardano failed to maintain its actions beyond $2, attracting sellers that took it south once more. Meanwhile, ADA trades nearly 2% up over the past seven days, using $2 as its support at the moment.

Cardano Might Plunge Further

According to ADA’s daily candles, the token faces massive offers around the top border of its 3-week-old plunge wedge pattern. However, the confluence of 21- and 50- Daily Moving Average near $2.45 serves as a sturdy supply region.

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ADA’s daily close beyond the supply area is vital to confirm an upside break over the falling wedge. That way, Cardano can test the nearest resistance at $2.80. If buying activities intensify, Cardano bulls might retest $3 before touching an ATH of $3.16.

Meanwhile, as the 14-day RSI stays under the midline and confirming a bearish cross, the altcoin has higher chances of plunging towards the psychological support at $2 if ADA records a daily low at $2.11. Meanwhile, the 21-day MA pierced the 50-day MA from the top on Saturday, confirming bearish gestures.

However, bears will have to conquer the massive cap near $1.85 for accelerated downside momentum. Remember, the slightly bullish 100 DMA and the declining trend-line support intersect at this level. For now, most tokens trade in the red after the recent blow by the Chinese central bank.

While writing this, the crypto market struggles to convert its recent losses. Bitcoin trades at $43,314 following slight upsurges. If the coming sessions reverse the current conditions in the market, ADA might cancel its bearish outlook. However, Cardano bulls should magnify their actions to conquer the multiple obstacles preventing upsurges.

What are your thoughts about the current condition in the crypto market? You can comment in the section below.


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