Cardano Price Prediction: ADA Price Retrace Towards $0.90 After Testing Two-Month Highs
ADA price trades with a negative bias on Friday. The price opened lower but quickly recovered to the session’s high. But, the continuation of the upside momentum seems limited now. The formation of a ‘double’ top formation suggests some profit booking in ADA price.
- ADA price fails to capitalize on the previous session’s gains.
- More downside toward $0.90 near 50-day EMA.
- The momentum oscillators tilt in favor of bears.
ADA price gains look reversible
On the daily chart, the ADA price took some breather near $1.16 after printing gains for four sessions consecutively. But, it seems buyers are not convinced of further upside moments in the asset. Now, a daily close below the session low will bring more downside into play.
If the price moves below the psychological $1.0 level then the first downside target could be found at the 50-day EMA (Exponential Moving Average) at $0.95.
An extended sell-off might expose the horizontal support line at $0.90.
On the contrary, a shift in bullish sentiment followed by a next green candle on the daily chart will bring bulls back into action. On moving higher, the first upside target is placed at $1.20.
ADA price depreciated nearly 100% from record highs of 3.09 made in September.
Next, market participants meet the upside hurdle at the 200-EMA of $1.30.
As of publication time, ADA/USD is trading at $1.09, down 3.21% for the day. The 24-hour trading volume of the seventh-largest cryptocurrency holds at $2,435,677,430 according to the CoinMarketCap.
Technical Indicators:
RSI: The daily Relative Strength Index reached the overbought zone in the previous session. This, suggested market was overheated.
MACD: The Moving Average Convergence Divergence traded above the mid-line with a neutral stance.
Trading Volume: The On Balance Volume indicator holds near the oversold zone.
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