As the fear, uncertainty, and doubt (FUD) in the cryptocurrency market continue to grow, the ADA price is struggling to maintain its footing on higher ground. For over two weeks, the Cardano price has remained within a confined range between the $0.38 and $0.35 levels. This consolidation, however, hovers above the long-coming support trendline of the channel pattern, keeping the overall trend bullish.
A breakdown below the support trendline could prolong the prior downtrend in the ADA price. The presence of daily exponential moving averages (EMAs) (20, 50, and 100) near the $0.38 level adds further selling pressure. Meanwhile, the intraday trading volume for ADA is at $112.3 million, representing an 11% loss.
On May 18th, the Cardano coin price dropped from a local resistance of $0.38. The subsequent reversal, in line with market uncertainty, caused ADA to fall for four consecutive days, resulting in a 5.4% loss. By press time, the ADA price trades at $0.359, attempting to break down from the long-standing support trendline. This lower trendline of the channel pattern has kept a steady rally going for the past four months, maintaining the overall bullish trend.
A breakdown below this support level, confirmed with a daily candle closing, would accelerate selling pressure on the Cardano coin. This potential downfall could cause prices to tumble by 17%, reaching the next significant support level of $0.3. On the flip side, if prices remain above the support trendline, buyers may retest the $0.38 mark, signaling a new bull cycle within the channel pattern.
Technical indicators such as the Bollinger Bands and the Moving Average Convergence Divergence (MACD) offer insights into ADA’s current state. Along with the support trendline breakdown, the ADA price will also challenge the lower band of the Bollinger Bands indicator, suggesting an opportunity for momentum selling. Meanwhile, the flattish MACD (blue) and signal (orange) lines highlight an indecisive trend in Cardano.
Cardano’s intraday price levels are as follows:
– Spot price: $0.359
– Trend: Down
– Volatility: Low
– Resistance levels: $0.37 and $0.39
– Support levels: $0.355 and $0.334
It is important to note that the presented content may include the personal opinion of the author and is subject to market conditions. Conduct thorough market research before investing in cryptocurrencies. Neither the author nor the publication holds any responsibility for personal financial loss.
Source: Coingape
