ADA Technical Analysis: Can Cardano Restore Dominance Above $0.50?
Table of contents
Key Technical Points:
Past Performance of ADA
The ADA prices break above the long-coming downtrend under the resistance trendline influence on 7th July with a 3.5% jump. However, the 50-day SMA providing opposition influenced a retest of the broken trendline. The price action shows a post-retest reversal on 13th July from the $0.40 mark accounting for a jump of 30% over the week.
Source - Tradingview
ADA Technical Analysis
The breakout rally helps the ADA market price exceed the $0.50 psychological level resulting in the bullish breakout of the 50-day SMA. Moreover, the price growing above the 50-day SMA teases a jump to the 100-day SMA. Additionally, the intraday trading volume grows to support the breakout rally.
The RSI indicator displays a sharp spike in the uptrend from below the halfway line to approach the overbought boundary within days. Therefore, the indicator shows a phenomenal increase in underlying bullishness over the days.
Furthermore, the MACD indicator displays the fast and slow lines surpassing the zero line while reclaiming the positive alignment, undermining the bearish attempt. Additionally, the growing bullish spread in the positive territory indicates that the uptrend will continue. Thus, momentum indicators maintain an encouraging viewpoint for the future.
In a nutshell, the ADA technical analysis shows a high likelihood of an uptrend continuing above the $0.50 mark.
Upcoming Trend
The bullish trend above $0.50 will most likely drive the ADA prices to the 100-day SMA at $0.61. Moreover, the increased chances of a bullish breakout will potentially fuel the uptrend to $0.75.
Resistance Levels: $0.61 and $0.75
Support Levels: $0.50 and $0.40