Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
The last 30 days have been interesting from a bullish standpoint for Cardano. Between 21 November and 21 December, the crypto-asset had climbed to its yearly high of $0.193. However, while during its recent rally it retested the $0.190-range, since then, it has collapsed in a matter of just a few days. While ADA’s bullish momentum might have faded now, the cryptocurrency’s short-term chart can be analyzed to identify any other trends that may be present.
Cardano 1-hour chart
Source: ADA/USD on TradingView
As can be seen from the chart, Cardano, at the time of writing, was undergoing a breakout from a descending triangle, following which, the asset was dropping below the support at $0.161. Now, in the hours before press time, while it had been a massive free fall, the crypto-asset appeared to have registered a minor retracement from the support level at $0.150. In the past one week, $0.150 has been tested on a few occasions following which, the asset has always managed to bounce back.
However, the support could get weaker now as the re-test is taking place over a bearish period. At the moment, staying above $0.150 will be critical if the asset wants to manage a bullish outlook in the near future.
Further, the 50-Moving Average also remained bearish at press time, with the price depreciating under $0.161.
Market Rationale
Source: ADA/USD on TradingView
The Awesome Oscillator or AO, at press time, was undergoing a significant drag in terms of bearish momentum, as indicated by the cryptocurrency’s price.
The MACD remained extremely bearish too as the Signal line kept above the MACD line on the charts. The indicators had a bearish bias, but the Stochastic RSI hinted at a sign of recovery. The blue line appeared to entertain a bullish crossover, a development that might allow the buyers to retain some of the market in the next few hours.
Conclusion
The important range for Cardano, at press time, was above $0.150, in order to maintain strong bullish sentiments. A dive under $0.150 and consolidation for more than 24-48 hours may affect the positive move built over the past week, and bears might re-establish a stronger grip on the market.
