While a majority of the assets are still trying to recover from the recent price drop, Cardano managed to record a new all-time high over the past week. Clocking in a value of $1.48 yesterday, Cardano is currently one of the top three assets in the world and while the asset has registered a 10% drop over the past few hours, it has maintained its 3rd position with a market cap of $38 billion.
Cardano 6-hour chart
Source: ADA/USD on Trading View
The 6-hour chart of Cardano continued to indicate a rising price but the asset was moving within the trendlines of an ascending channel. With a couple of higher highs witnessed, the asset has dipped over the past 24-hours, and the correction may go even further in the charts. A bearish breakout should allow the asset to recover its position at a previously held range before addressing the higher range again in the future.
At press time, the 50-day Moving Average has continued to act as underlying support but a possible move below $1.12 is likely.
According to the VPVR range, the support range at $0.90-$0.95 could be tested since the trading volume at the price point has been significant over the past few weeks.
Market Indicators
Source: ADA/USD on Trading View
Market Indicators appeared a little on the neutral side at press time but considering the pattern was bearish, the indicators may head in the same direction.
Relative Strength Index or RSI is currently holding a position above 50 but the indicator suggested an increasing selling pressure in the chart. Stochastic RSI is exhibiting a bearish pullback at press time, with the signal line hovering the bullish line.
MACD appeared bullish at press time, but a potential trend reversal is in the charts, with the MACD line converging towards the bearish line.
Important levels to watch out for
Resistance: $1.48
Support: $1.30, $0.92-$0.90
Entry Position for Short: $1.325
Stop-Loss: $1.48
Take Profit: $0.90-$0.92
Risk/Reward Ratio: 2.43x
Conclusion
Cardano’s price action has been within the ascending channel formation and a bearish breakout in the coming week should not be discounted.
