Disclaimer: The findings of the following analysis are the sole opinions of the author and should not be taken as investment advice.
A brief rally yesterday fueled hopes of a northbound breakout for Cardano. However, the move ended in some disappointment as sellers remained vigilant at $ 2.30.
Now trading back within the confines of a symmetrical triangle, ADA split, even within a bullish and bearish result. Once again, certain swings attracted attention as the battle for the ADA market was endless. At the time of writing, ADA was trading at $ 2.18, down 2% in the past 24 hours.
Cardano’s 4-hour chart
The ADA’s close above its previous high of $ 2.25 injected hopes of a symmetric triangle breakout, a pattern that has held for more than a month. However, the rejection at $ 2.30 dampened any bullish expectations, as the ADA was again within a neutral bias.
With the 4-hour 200-SMA (green), 50-SMA (yellow) and 20-SMA (red) close behind, ADA will continue to move lightly in anticipation of a much-needed catalyst. A close below $ 2.07 would invite short selling and expose ADA to reductions in the short-term support levels of $ 1.80 and $ 1.71.
Conversely, the $ 2.33 and $ 2.40 should be nullified if the bulls want to take control of the proceedings. In the best case, ADA would embark on a 22% increase to $ 2.80, as long as volumes remain healthy during the climb.
When ADA tried to break above $ 2.30, its Relative Strength Index witnessed a brief rise towards the overbought zone. This may have triggered some sell signals in the market. His reading of the post time, along the midline, did not present a clear direction in terms of a breakout.
Similarly, the indifferent movement of the Awesome Oscillator offered no clues either. On the other hand, the Directional Movement Index largely favored sellers on the back of a bearish crossover.
The direction of the ADA break was anyone’s guess, at press time. To be on the safer side, traders should wait for ADA to develop the indicated key swing areas, before taking any calls in the market.
This is a machine translation of our English version.