ADA bounces off long-term support, can the rally continue?
Cardano (ADA) has been down since May 16, but bounced off long-term rising support on June 22.
It is trading along a short term descending resistance line, a breakout may lead it towards the $ 1.90 resistance area.
ADA goes under
The ADA has fallen since hitting an all-time high of $ 2.47 on May 16.
It hit a low of $ 1 on June 22nd and then bounced back. This move confirmed the rising support line (green symbol) for the fourth time.
Despite the recovery, technical indicators are falling. The stochastic oscillator has generated a bearish cross (red symbol), the MACD shows a bearish reversal signal and the RSI is falling. This is a sign that the long-term trend is still down.
Weekly ADA / USDT Chart | Source: TradingView
The shorter-term six-hour chart shows a potential triple bottom is emerging in the $ 1.08 horizontal support area. Additionally, it is showing a descending line of resistance drawn since June 3rd.
A break above this line will take ADA towards the $ 1.90 resistance area, which equates to the 0.618 fib retracement resistance.
ADA / USDT 6-hour chart | Source: TradingView
Despite the potential for a rebound, the token appears to have completed a bullish surge that began in March 2020.
In this case, the uptrend suggested is just wave B (white) before another drop completes the correction.
Daily ADA / USDT Chart | Source: TradingView
ADA / BTC
Trader CryptoMichNL is offering an ADA / BTC chart indicating that the next drop could be into the 3000 Satoshi support area.
ADA broke below the 3800 satoshi horizontal support area which is now likely to act as resistance. In addition, the technical indicators are falling. MACD, RSI and Stochastic Oscillator are all turning down.
The next support is the 3000 satoshis level, the .618 fib retracement level, and the horizontal support area.
Daily ADA / BTC chart | Source: TradingView
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto