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Cardano targets a drop towards $1.85

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  • 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.

Cardano

MetaNews.

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.

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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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