Cardano Technical Analysis: 20-day SMA Helps ADA Bounce Up
Daily Cardano ADA Price Analysis
- $0.365 resistance line stops Cardano price from going up.
- The Bollinger band in the 4-hour ADA chart has started narrowing.
Over the last four days, the Cardano price jumped from $0.310 to $0.365 before dropping to $0.344. Since then, the 20-day SMA has held strong for ADA and forced it to jump back up to the $0.353 levels.
Cardano Fights Back After $0.365 Rejection
Over the last five days, the Cardano price managed to flip the parabolic SAR from bearish to bullish, which shows that the market sentiment is still positive. The relative strength index (RSI) has not yet entered the overbought zone, which tells us that ADA still has more room for growth.
Image: ADA/USD daily chart
The $0.365 resistance barrier which has completely inhibited the price seems to be pretty strong. Previously, at this level, 29,300 addresses had purchased 1.91 billion ADA tokens. If Cardano price manages to break above this zone, ADA will reach $0.40.
In the 4-hour Cardano price chart, ADA managed to flip the 20-bar and 50-bar SMAs from resistance to support in a little over a day. The moving average convergence/divergence (MACD) shows that the bearish market momentum is about to reverse from bearish to bullish. However, the Bollinger Band has started narrowing, which may show decreasing price volatility.
Image: ADA/USD 4-hour chart
Cardano Price Is Expected To Reach These Levels
The Cardano price has jumped up from the 20-day SMA and is aiming for the $0.365 resistance level. If ADA manages to break this barrier, it will reach $0.40.