Cardano Price; Will There Be a Bullish Breakout at $1.31?

Cardano Price; Will There Be a Bullish Breakout at $1.31?

ADA Price Analysis – May 04

The breaking up of the resistance level of $1.31 will increase the price to the resistance level of $1.46 which may extend to $1.68 level. Should the sellers interrupt the bulls’ pressure and gain enough momentum, ADA/USD may decrease to $1.23, $1.11 and $0.98.

ADA/USD Market

Key Levels:

Resistance levels: $1.31, $1.46, $1.68

Support levels: $1.23, $1.11, $0.98

ADA/USD Long-term Trend: Ranging

Cardano is on the ranging movement on daily chart. Cardano was bullish last two weeks, the price increases to complete the formation of an inverted head and shoulder chart pattern. Buyers dominated the market and the price tested the resistance level of $1.46. The bullish momentum became weak and could not break up the level. It pulled back to retest the support level at $1.23, the bears’ momentum is equally weak to break down the mentioned level. The price commences ranging movement last week within the $1.31 and $1.23 levels.

ADAUSD Daily chart, May 04

Cardano retains its trading above the 9 periods EMA and 21 periods EMA but at close contact to the EMAs. The breaking up of the resistance level of $1.31 will increase the price to the resistance level of $1.46 which may extend to $1.68 level. Should the sellers interrupt the bulls’ pressure and gain enough momentum, ADA/USD may decrease to $1.23, $1.11 and $0.98. The technical indicator Relative Strength Index period 14 is at 50 levels with the signal line pointing downside which indicates a bearish signal.

ADA/USD Medium-term Trend: Ranging

Cardano is on the ranging movement on 4-hour chart. The crypto completed the formation of an inverted head and shoulder chart pattern last two weeks at the resistance level of $1.46. The bears interrupted further increase in price by defending the mentioned level. The support level of $1.23 equally holds the price and this leads to price consolidation.

ADAUSD 4-hour chart, May 04

The price is trading over and around the 9 periods EMA and 21 periods EMA while the two EMAs are interlocked to each other indicating that consolidation is ongoing. The relative strength index period 14 is at 50 levels and the signal line pointing up to indicate buy signal.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.