- Cardano’s path of least resistance looks bearish.
- Bearish crossover and RSI point to further weakness in ADA price.
- ADA sellers are targeting the 100 SMA at $1.85 after a firm break below $2.
Cardano price is once again on slippery ground this Sunday, pointing to the start of a new week on the defensive as ADA bulls lack continuation recovery momentum.
ADA/USD broke a psychological magnet of $2 on Saturday after Friday’s broad-based wild move. However, ADA sellers moved lower as they failed to hold near $2.50.
Currently, the third cryptocurrency is trading above $2, up about 2% for the week.
Cardano price could see an extension of the decline
On Cardano’s daily charts, ADA price continues to face strong resistance at the upper boundary of a three-week descending wedge pattern.
The confluence of the downtrend line, the 21-day moving average, and the 50-day SMA around $2.45 represents a powerful resistance zone.
A daily close above this level is critical to validate the breakout of the descending wedge, which could lead to a test of the intermittent resistance near $2.80.
In higher price levels, ADA bulls could attempt a retest of $3 on their way to an all-time high of $3.16.
Although, with the 14-day RSI below the midline and the bearish crossover confirmed on the daily chart, the downside appears open towards the psychological $2 support if the daily lows of $2.11 are broken.
This shows a bearish signal, since the 21 SMA moved below the 50 SMA on Saturday.
After a bearish momentum acceleration, $1.85 will be the level to beat for ADA bearish traders. This level represents the confluence of the downtrend line support and the bullish 100-day SMA.
The next relevant support is at $1.63, which is the 200-day SMA.