Cardano (ADA) Price Watch: Channel Break and Retest
Cardano Price Highlights
- Cardano price recently broke below its ascending channel to signal that a reversal is underway.
- Price found support around 0.1200 and may need a correction before resuming the drop.
- Applying the Fibonacci retracement tool shows where more sellers might be waiting to join in.
Cardano price could be in for a correction from its breakdown before gaining more traction on its slide.
Technical Indicators Signals
The 100 SMA is still above the longer-term 200 SMA on the 4-hour time frame to signal that the path of least resistance is to the upside. However, the gap has narrowed enough to suggest that a bearish crossover is looming, giving bears more energy to push Cardano price down.
Using the Fib tool on the latest swing high and low shows that the 38.2% to 50% levels are in line with the broken channel support that might hold as resistance from here. These are also close to the dynamic inflection points at the moving averages.
RSI is still moving up to show that buyers still have the upper hand for now and could keep the correction going for a while. Similarly stochastic is heading higher to signal the presence of bullish pressure as well. Once both oscillators hit overbought levels and turn back down, selling pressure could return and lead to a drop back to the swing low.
ADAUSD Chart from TradingView
There might still be a chance for Cardano bulls to return, though, as the group released its road map and key principles for future growth. In the latest update, it stated:
“We are currently in Byron, the bootstrap phase, where we are making improvements. These include to the code, for example in the wallet backend, and debugging. We will improve the design of Daedalus and make integration through APIs to third parties simpler. We will then move from Byron to Shelley, where the network becomes decentralized.”
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by Sarah Jenn on August 06, 2018 at 10:03AM