Cardano Technical Analysis: ADA Faces Correction After Three Straight Bullish Days
Daily Cardano ADA Price Analysis
- Cardano price faces immediate resistance barrier at $0.44.
- 20-bar SMA in the 4-hour SMA chart has stopped the downflow.
Cardano price had three straight bullish sessions, wherein ADA jumped from $0.34 to $0.44, bouncing up from the 20-day SMA. As things stand, the $0.44 resistance barrier has stopped the price from going any higher.
Cardano Price Faces Correction
During the last three days’ bullish surge, the relative strength index (RSI) managed to creep into the overbought zone. However, today’s bearish correction has forced the RSI back inside the neutral zone. Cardano price is currently trading for $0.427.
Image: ADA/USD daily
Cardano price currently faces massive resistance at $0.44. Previously, at this level, 18,500 addresses had purchased 1.4 billion ADA tokens. If the price breaks above this zone, ADA should reach the $0.49 level. On the downside, we have two healthy support walls at $0.413 and 20-day SMA ($0.365).
Looking at the 4-hour Cardano price chart, we can see that the MACD shows increasing bearish market momentum. The 20-bar SMA seems to have turned out to be a saviour and stopped further downflow.
Image: ADA/USD 4-hour
Cardano Price Is Expected To Reach These Levels?
As things stand, with the increasing bearish momentum, we can expect Cardano price to drop to the $0.413 support. However, the IOMAP tells us that this zone is robust enough to prevent further downflow. If the bears somehow manage to break below this line, the Cardano price will reach the 20-day SMA ($0.365).