Cardano Falls But Bulls Keep Falling Wedge In Tact

-ADA falls -25% the last week
-Price currently sits at major support zone
-50 MA has held price down the last 2 weeks

Cardano has been one of the strongest coins the last few months as the market has tumbled. Price is still up nearly 5000% from its low in March of 2020. The majority of alt coins are only still up 1000%-2500%. This is very impressive as ADA continues to make strides towards becoming a better version of Ethereum. Once the market turns bullish again, ADA will likely see a large rise past $2.

Throughout the last few months, Cardano has formed a bullish falling wedge pattern. Even with the large drop the last week, ADA is still within this pattern. ADA must break over its current resistances of $1.09 & $1.15. If bulls manage to pull this off, ADA must then break over its 50 MA. This MA has held ADA down for a few weeks and a break above will likely set the stage for a clear path out of its falling wedge pattern.

At the time of writing, ADA is sitting on its major support zone found at $0.98-$1.03. If bears continue controlling price & push ADA below this zone, it will likely be in for a large fall under $1. If this occurs, ADA will then be out of its falling wedge pattern in a bearish manner. We can expect price to bounce at $0.90 or $0.84.

While looking at the RSI, we can see strength just had a sweep into the oversold territory below the 30 value. Strength has created a descending channel formation and it must break its top trend line to experience a large pump. The Stochastic RSI has just bounced out of oversold territory which shows some bulls are still buying up the dip.


ADA intraday levels

Spot rate: $1.05
Trend: Bearish
Volatility: High

Support: $1.03
Resistance: $1.09