After rising 60% from the bottom of the marked descending channel during the second half of March, Cardano has now reached a critical resistance level at the top of the channel.

The bulls are trying to break out of it, however they have so far failed to close a daily candle above it.

Unlike BTC and ETH, which are battling it out on the daily MA-200 line, ADA has yet to touch it. The important moving average is currently around $1.5.

technical analysis by Grizzly

the daily chart

Cardano has now calmed down after a solid 2-week surge. From the upside, the main challenge that ADA is currently facing is the static resistance at $1.26.

Overcoming this resistance is essential to continue the uptrend. If the price can break above this barrier, the next resistance lies at $1.5, crossing the daily MA200.

On the other hand, the first major support is found at $1.1 and then at $1. Considering the market conditions, ADA is more likely to retest key resistance.

RSI 30 days: Bullish movement in the bullish zone towards the marked descending line.

Moving Average Levels

MA20: $1.02

MA50: $0.95

MA100: $1.09

MA200: $1.5

The 4 hour chart

On the 4-hour time frame, the resistance at $1.26, which was mentioned earlier, caused ADA to form a cup and handle pattern (marked in yellow).

The Williams %R indicator has also entered bullish territory, which is a positive sign.

If the bulls can push the price higher and break this resistance (marked in red), Cardano’s path towards the next resistance at $1.5 (MA200) will be smoother.

At the moment, all eyes are on Bitcoin. If BTC can break above the MA200 daily barrier and continue its upward path, the entire market is likely to follow.

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Cryptocurrency charts from TradingView.





This post ADA fails at critical resistance, this is the level to watch

was published first on https://cryptopotato.com/cardano-price-analysis-ada-fails-at-critical-resistance-here-is-the-level-to-watch/

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