In the previous Cardano technical analysis, we mentioned that the cryptocurrency pair is in a bear market, and the downtrend will likely resume after the consolidation phase ends. A week later, the ADA/USD trades sideways at about $0.46, meaning the market suffers from a lack of momentum, and the uncertainty in the trend direction prevails.
Cardano Technical Analysis Daily Chart
The daily image from the ADA/USD pair shows the price below the 23.6% Fibonacci level. In recent developments, the bears stabilized the price below EMA 50 at $0.47, implying that regardless of the indecision market, the price is keen on a bear market rather than a bull market.
The technical indicators align with the price action and don’t provide a significant signal. The awesome oscillator value is low, nearing the zero line with red bars. When the awesome oscillator bars are tiny and close to the signal line, which is zero line, it indicates that the market is lacking from a specific trend direction.
- The relative strength index value is 46. The RSI 14 line moves alongside the 50 line, showing no bearish or bullish momentum in the price.
- The stochastic oscillator hovers around the middle at 40, which signifies the market is not overbought or oversold. This indicates that the investors and traders in Cardano are uncertain about the market direction.
These developments in the technical indicator in the ADA/USD daily chart suggest uncertainty in the market. However, we zoom into the 4-hour chart to find critical levels and possible trading opportunities.
Cardano Technical Analysis 4-Hour Chart
The 4-hour chart shows that Cardano’s price is below EMA 50 and EMA 100. These indicators move alongside and cling to each other, another signal of a sideway market. The immediate resistance is at $0.466, with both exponential moving averages (50 and 100).
The technical indicators, as does the ADA/USD daily chart, suggest a low momentum market.
- RSI value is 44, moving sideways near the middle line.
- The stochastic value is 60, showing the market is not saturated from buying or selling pressure.
- The awesome oscillator lines are green, below the zero line, showing -0.008 in value. Interestingly, the bars are still green despite losing value! This means the Cardano market doesn’t have any trend at the moment.
Therefore, we must solemnly rely on the key levels to predict the subsequent scenarios in both bull and bear markets.
Cardano Price Potential Dip to $0.41
From a technical standpoint, the Cardano price will likely dip to May’s all-time low at $0.418 if it remains below this level, or there will be no significant bullish breakout, such as with a full-body bullish candle.
ADA/USD Bullish Scenario
On the flip side, if the ADA/USD breaks out from the immediate resistance at $0.466 with a long and full-body bullish candlestick pattern, the uptick momentum can target the 23.6% Fibonacci level at $0.492, followed by April’s peak at $0.510.
Cardano Key Support and Resistance Levels
Traders and investors should closely monitor the ADA/USD key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Resistance: $0.453, $0.418
- Support: $0.466, $0.492, $0.51
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.