Altcoins price analysis
To maintain Cardano’s recent uptrend, bulls or so-called Cardano bulls should try to maintain the $0.50 support.
To Report Cryptopotato, Cardano’s break of $0.5 resistance didn’t last long, and in fact, the formed bullish trend was not valid. Now, once again, the $0.55 level has become a resistance. The pressure of buyers is the only factor that can prevent the price from falling below the ascending triangle (blue color); But if this reduction takes place, the momentum of the downward trend will increase and the proponents of price reduction or the so-called market bears will take control of the action.
During the crossing of the $0.55 resistance, the trading volume was high; But steady sales volumes over the past few days have reversed this trend.
The value of the daily RSI index is decreasing and is approaching the middle point and the number 50. The upward trend could not bring the value of this index closer to the area of 70 units (overbought area) and this can be interpreted as one of the signs of weakness on the buying side.
Also read: What is the RSI indicator and how to use it in technical analysis?
The daily MACD index is at most one day away from the bearish cross. If the two coincide, sellers will probably set the trend in this market for a while.
Also read: What is the Macdi indicator? Full tutorial on using MACD in trading + video
Short term forecast
Cardano’s upward trend did not have the necessary strength and the price quickly returned to the previous channel; Therefore, most of the recent climbs are considered lost. Currently, Cardano is supported at the price levels of $0.5 and $0.44. If buyers fail to prevent the price from falling below the ascending triangle, the price correction is likely to be longer.