Cardano (ADA) is attempting a breakout above the descending parallel channel that has formed since the all-time high. If successful, it may retest the resistance of the $ 1.92 to $ 2.38 range.

Until ADA breaks out of this range, the direction of the trend remains undetermined.

• Key Support Level: $ 1.92
• Key Resistance: $ 2.38

Daily ADA / USDT Chart | Source: TradingView

Technical indicators

Volume: The volume remains low, especially at the end of the week. However, the breakout on the descending channel was followed by a surge in volume, showing that buyers are still interested in ADA.

RSI: The RSI remains bearish in key time frames (daily and weekly). In the weekly timeframe, the RSI has made a lower high and a clear bearish divergence since February 2021 (yellow arrow).

MACD: The MACD has just formed a bearish cross in the weekly timeframe. This is not a positive sign for the bulls as when this signal appeared earlier it took the pair more than two months to resume its uptrend.

Weekly ADA / USDT Chart | Source: TradingView

Conclude

Technical indicators and price action suggest that ADA could consolidate in the $ 1.92-2.38 range for a while before breaking out.

The longer the range moves, the greater the movement after the breakout. Hence, traders will need to keep a close eye on resistance and support levels in the $ 1.92-2.38 area to benefit from the trend.

You can see the coin prices here.

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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.

SN_Nour

According to Cointelegraph

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