ADA rebounds after retesting previous all-time high

Cardano (ADA) has been down since it hit an all-time high of $ 2.51 on May 16.

It fell sharply between May 16 and 19, confirming the previous all-time high as support. However, the technical indicators could not confirm the direction of the trend.

Long term movement of ADA

ADA hit an all-time high of $ 2.51 on May 16. After that, however, it crashed and fell 65% over the next three days. This resulted in a low of $ 0.91 on May 19th. Additionally, ADA produced a bearish candle on the weekly timeframe.

Despite the decline, the token confirmed the resistance area at the previous all-time high of $ 1 as support.

The technical indicators give mixed signals. MACD has created a lower momentum bar but has not yet shown a bearish reversal. The RSI is falling but has created a potential bullish divergence. The stochastic oscillator is falling, but has not yet formed a bearish cross.

Hence, the lower time frame should be considered to determine the direction of the trend.

Weekly ADA / USDT Chart | Source: TradingView

Trader CryptoCapo outlined an ADA chart suggesting this move looks extremely bullish. This is because price has retested the resistance area at the previous all-time high, which may confirm it as support.

Source: Twitter

Prices are exploding

The daily chart is not very helpful in determining the current trend.

ADA has bounced back from an ascending support line drawn since Feb 3rd. However, the technical indicators are falling. This becomes particularly clear when the stochastic oscillator forms a retrograde cross.

Therefore, it is likely that this support line will be tested again. This line roughly coincides with the $ 1 long-term support area outlined earlier.

Because of this, despite the lack of conviction from the technical indicators, we can consider an uptrend as long as the price is trading above this level.

Daily ADA / USDT Chart | Source: TradingView

ADA / BTC

The ADA / BTC chart looks more bullish than the USD chart. Despite last week’s decline, the pair is still trading above the Satoshi zone of 3,800, which confirms this as support.

Technical indicators tend to trend upwards. Before the decline, the RSI showed a bearish divergence. As a result, there was a drop.

Both the MACD and the stochastic oscillator remain positive. The next area of ​​resistance is 6,150 satoshis.

Weekly 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.

SN_Nour

According to Beincrypto

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