Cardano Price Declines to $0.56 Support Level, Bullish Reversal Envisaged

Updated:

ADA Price Analysis – May 10

Inability to break down the $0.56 by the sellers may lead to price reversal and the price may increase to resistance levels at $0.75, $1.01 and $1.26. Should the sellers exert more pressure on the market, the support level of $0.56 may be penetrated and the support levels of $0.42 and $0.38 will be reached.

ADA/USD Market

Key Levels:

Resistance levels: $0.75, $1.01, $1.26

Support levels: $0.56, $0.42, $0.38

ADA/USD Long-term Trend: Bearish

Cardano is bearish on daily chart. Sellers’ pressure is increasing in the Cardano market. Two weeks ago, the price was consolidating at $0.75 level when the bears’ pressure was weak. On May 07, sellers exert more pressure and the support level of $0.75 was penetrated downside, and the $0.56 support level is tested. The price is currently pulling back.

The fast moving average remains below the slow moving average and Cardano is trading below the 9 periods EMA and 21 periods EMA after broken down the dynamic support levels. Inability to break down the $0.56 by the sellers may lead to price reversal and the price may increase to resistance levels at $0.75, $1.01 and $1.26. Should the sellers exert more pressure on the market, the support level of $0.56 may be penetrated and the support levels of $0.42 and $0.38 will be reached. The technical indicator relative Strength Index period 14 is at 34 levels with the signal line pointing upside which may indicate a bullish signal.

ADA/USD Medium-term Trend: Bearish

Cardano is on the bearish movement on 4-hour chart. On April 04, Cardano price pulled back to retest the broken level of $1.01. The sellers interrupt the buyers and the price decreased to test the $0.56 support level. Bulls are currently defending $0.56 level and the price is pulling back.

At the moment, Cardano price is trading below the 9 periods EMA and 21 periods EMA while the fast EMA has crossed the slow EMA downside. The relative strength index period 14 is at 38 levels and the signal line pointing up to indicate buy signal.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.