• Thu. Apr 25th, 2024

Cardano (ADA) In a Constricted Range, Awaiting a Massive Move

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Oct 17, 2021

Cardano tries to overpower its descending channel. That could place it inside the range between the resistance at $2.4 and the crucial support around $2. Analysts point out that ADA should overpower this range to prevent a continuous volatile consolidation inside these levels.

  • Critical Support Level – $2
  • Crucial Resistance Level – $2.4

Technical Indicators

  • Trading Volume

Cardano’s trading volume remains low over the weekend. However, a considerable price volume followed the break past the descending price channel. That indicated that buyers stay interested in the altcoin.

  • Relative Strength Index (RSI)

The Relative Strength Index depicts bearishness on the weekly and daily timeframes. On the weekly one, the indicators have created lower highs since 2021 February, a bearish sentiment.

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  • Moving Average Convergence Divergence (MACD)

MACD underwent a bearish crossover on ADA’s weekly timeframe. That might not mean positivity for bulls since it can take more than two months before Cardano resumes its upsurge. That is when compared to the latest weekly bearish crossover.

Meanwhile, MACD is somewhat flat on the daily price chart. That suggests that Cardano might consolidate within the said range for long before breaking out.

Cardano Bias

ADA sustains bearishness in the short term. The alternative coin created a considerable bearish divergence between the RSI and price (weekly timeframe). Though the price recorded higher highs, the Relative Strength Index saw lower highs.

That way, buyers should act with care as far as ADA/USD is concerned at the moment. Keep in mind that MACD displayed a weekly bearish crossover on the MAs. It might be somewhat challenging to predict near-term bullishness for ADA.

However, if ADA maintains its price movements beyond the $2, it will magnify its probability of claiming higher zones, joining the bullish outlook by large-caps like Bitcoin, Ethereum, and Polkadot. Keep in mind that the overall crypto market has sustained positivity in the past few sessions.

ADA Near-Term Price Forecast

For now, expect Cardano to trade in the price range from $2 to $2.4. If the altcoin overcomes these levels, market players can witness a quick reaction from bears or bulls, resulting in considerable price actions in either direction.

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