With the launch of the decentralized exchange, SundaeSwap, last Thursday, Cardano (ADA) price is exploding despite the gray clouds on crypto. SundaeSwap is the first DeX on the Cardano blockchain. The ADA price has rallied more than 30% in the past week leading to a double bottom breakout. Thus, the recent reversal in coin prices marks a retest of the bullish breakout.
Main technical points
- ADA coin fails to rise above 200-day EMA
- The daily MACD reflects an increase in underlying bullish momentum.
- The intraday trading volume of the ADA coin is $4.9 billion, representing a 27% drop.
The source- Tradingview
In our previous coverage of Cardano Price analysis, the coin price broke out of the $1.5 mark. However, the price failed to sustain above the mark and reversed to $1,125.
With new demand found near the $1,125 mark and the launch of SundaeSwap, the ADA price shows a sparking rally. The price jump led to a bullish breakout of a double bottom in the daily chart. Therefore, the recent reversal in coin prices offers a retest of the pattern breakout.
Analyzing the important EMAs (20, 50, 100 and 200), we observe a downtrend in the daily chart. The 200-day EMA provided dynamic resistance to the coin price leading to a recent reversal below the 100-day EMA. However, the 50-day EMA stands firm to push the price higher once again.
Furthermore, the Daily Stochastic RSI reflects a bearish crossover of the K and D lines in the overbought zone.
ADA price chart shows increasing selling pressure
The source- Tradingview
ADA price failed to sustain above $1.5 mark leading to increased selling pressure. Currently, the coin’s price hangs near $1.45, with a daily drop of almost 10%.
The MACD indicator shows a signal and the MACD line is heading higher to the zero line in the daily chart. The increase in the bullish chart reflects an increase in the underlying bullish momentum.
- Resistance levels- $1.5 and $2
- Support level- $1.125 and $1