Cardano (ADA/USDT) Targets Previous Consolidation Zone
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Cardano Long-term Analysis: Bearish
The Cardano and Tether pair has climbed strongly, breaking out of an extended consolidation phase and reaching a new high near $1.0995 in previous weeks. However, recent profit-taking and a larger correction have resulted in a downturn, increasing concerns about potential negative risks.
To this end, the recent decline reflects market uncertainty about whether ADA/USDT will resume its uptrend or retest lower support levels.
Currently, ADA/USDT trades at 0.7948 with 1.55 billion weekly traded volumes.
Technical Indicators
Major Resistance Levels: $0.8172, $0.9436, and $1.1210
Major Support Levels: $0.7263, $0.6007, and $0.5801
Cardano Technical Analysis
The analysis of Cardano against the Tether shows the pair’s price is falling back into a previous ranging zone after failing to sustain momentum above the newly set height. The Guppy Multiple Moving Averages (GMMAs) suggest a recent weakened uptrend, as the shorter-term EMAs flatten out, converging towards the longer-term EMAs.
Also, at the bottom of the chart, the Stochastic RSI signals a downtrend, as the lines indicate a move away from the overbought zone with the indicator’s lines pointing to the South.
In the near term, Cardano needs to hold above the $0.7263 level to prevent further downtrend; otherwise, a dip below this level would lead to a retest of $0.6007 or lower support.
ADA/USDT Analysis: Expectations
ADA/USDT on the daily timeframe has shown a sharp price decline, with the pair facing selling pressure.
Recent price action shows the price is below the $0.7967 key support level. However, this bearish sentiment appears to be driven by weakening momentum, as seen in the declining trading volume, as prices slide further to the South.
The GMMAs on the chart have displayed a bearish crossover, with the short EMAs mixing with the long EMAs, signaling increased downward pressure as buying interest decreases.
On the other hand, the Stochastic oscillator indicates an oversold condition with both lines operating in the extremely lower values. This suggests that the downtrend may persist without a strong bullish catalyst anytime soon.
To this end, ADA/USDT needs to break above $0.8814 with strong buying interest for an upside recovery; otherwise, a dip below $0.7967, the current price, could lead to further stretch to the South.
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