Cardano Price Prediction: ADA Breaks Below Key Level
Daily Cardano ADA Technical Analysis
- Cardano price RSI has dropped to the neutral zone from the edge of the overbought zone.
- ADA is stuck between key levels.
Between February 28 and March 4, the Cardano price dropped from $1.32 to $1.11. After trending horizontally for a bit before jumping up to $1.12. However, the bears then stepped back into the market and dropped it to $1.15. During this process, a key level was flipped from support to resistance.
Cardano Price Flips 20-day SMA
Over the last two days, the Cardano price fell from the $1.20 resistance and managed to flip the 20-day SMA from support to resistance. The relative strength index (RSI) has dipped to the neutral zone from the edge of the overbought zone.
Image: ADA/USD daily
The Cardano price is sitting on top of a moderate support level at $1.10. Previously, 58,700 addresses had purchased 1.17 billion ADA tokens here.
Since early February, every time ADA has risen to this technical formation’s upper boundary, it has gotten rejected and retraced to the lower edge. From this point, it has rebounded, consistent with the characteristics of a channel. Following the recent retest of the channel’s lower trendline, Cardano may be poised for a bullish impulse towards the middle or upper trendline as it has done in the past few weeks. As long as the underlying support at $1.10 continues to hold, the odds of a rebound (to new all-time highs) will remain intact.
Cardano Price Is Expected To Reach These Levels
Cardano’s native token ADA appears to have stagnated for a few days now without providing a clear sign of where the price is heading next. The asset is currently sitting at a crucial point and a spike in demand could help ADA reach new all-time highs.
Given the significance of the $1.10 support level, only a daily candlestick close below this level would invalidate the bullish outlook. Getting through this price hurdle will see Cardano dive towards the next important interest area at $0.88.