Cardano (ADA) Price Watch: Ready to Reverse from the Drop?Cardano (ADA) Price Watch: Ready to Reverse from the Drop?


Cardano Price Key Highlights

  • Cardano is still in its descending channel but might be gaining traction off the bounce.
  • Applying the Fib tool shows the next potential resistance levels that could keep gains in check.
  • Technical signals are looking mixed, with oscillators suggesting further gains in the cards.

Cardano appears to be gaining some traction after its channel support bounce and could aim for the Fibs next.

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This means that the selloff is more likely to resume than to reverse. In addition, the 100 SMA dynamic inflection point lines up with the channel resistance to add to its strength as resistance.

The 100 SMA also coincides with the 50% Fibonacci retracement level around 0.1900 while the 200 SMA is closer to the 61.8% Fib just past the 0.2000 major psychological level. This might be the line in the sand for the downtrend as a break past this could bring more buyers in.

RSI is on the move up to show that buyers have the upper hand and could push for a climb. Similarly stochastic is pointing up so Cardano price could follow suit. Once both oscillators hit overbought levels, though, selling pressure might return and lead to a drop back to support.

ADAUSD Chart from TradingView

Market Factors

Cryptocurrencies got a fresh boost from the news that New York’s FSA gave a license to Square’s Cash app, which allows clients to trade bitcoin in the state. The app has 7 million active users based on its first quarter earnings call, which means a lot of potential liquidity and volumes for bitcoin.

Of course this type of news tends to spill over to other altcoins and Cardano could be strongly poised to take advantage. Cardano has been added by Bithumb to their list of trading coins starting on June 13.


Photo via Shutterstock.

Source: Newsbtc



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