Cryptocurrencies Economy Forex

Cardano may fall to test SMA200-day at $1.80

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  • Cardano’s path of least resistance looks bearish.
  • ADA price targets $1.80 again as the $2.00 region offers strong resistance to the bulls.
  • Symmetrical triangle breakout remains in play amid a bearish RSI.

In an attempt to outperform rival Ethereum, the Cardano Foundation partnered with governments globally. This is an initative to work on blockchain solutions to solve real-world problems. The new partnerships make the ADA blockchain one of the greenest in the cryptocurrency ecosystem.

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Although these positive developments have failed to impress ADA bulls, the Cardano price remains in a downward consolidation mode for the third consecutive day on Saturday.

After hitting a two-month low of $1.82 on Wednesday, the ADA price is pulling back. Sellers continue to defend the rally at the $2 level, limiting recovery attempts in the fifth cryptocurrency.

The altcoin lost more than 1% on the day, currently trading just below $2.

Cardano’s price remains exposed to downside risks amid bearish technical charting

ADA’s daily chart paints a bearish picture after the price confirmed the breakout of a symmetrical triangle below the key $2 support on Wednesday.

After a two-day bounce, the 14-day RSI remained bearish. It is experiencing further declines while maintaining a range below the midline, indicating downside risks.

ADA sellers are looking to retest support at the 200-day moving average.

In order to initiate a sustained downtrend, ADA sellers are looking to retest the upward sloping 200-day moving average support at $1.80.

The next line of defense for ADA bulls is at the psychological $1.50 level, below which the pattern target of $1.39 is at risk.

On the other hand, buyers of ADA must find a solid foothold above the triangle support, now turned resistance at $2.03, for the recovery to gain significant traction.

ADA bulls will face resistance at $2.13, where the 21-day and 100-day SMAs converge.

The downward sloping 50-day SMA at $2.21 will challenge bearish commitment. ADA’s price last closed above the 50 SMA on September 18

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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