As the market leaders paved the way for a recovery, Cardano broke through its 4-hour EMA while hitting the $1.20 mark as support. Additionally, Algorand and Filecoin managed to move their short-term SMA from resistance to support while regaining key price levels.
However, it may be too harsh to assume a solid trend reversal until the bulls mark a sustained close above the long-term downtrend lines. Furthermore, they need to join with increased volume to support a promising rally.
Cardano (ADA)
Source: TradingView, ADA/USDT
ADA’s expanding wedge (white) has turned down from the $1.5 resistance. As a result, it saw a channel retracement down to 32.84% (from the December 27 high) until hitting a six-month low on January 10.
While 20-EMA stood as a strong resistance throughout the decline, the recent rally found a convincing close above all EMA Ribbon. Now, as ADA tests the $1.30 resistance, the bulls have reclaimed the critical $1.20 support.
At press time, ADA trades at $1,284. The RSI saw an expected uptrend after forming an ascending triangle on the 4-hour timeframe. Now, it has dropped out of the overbought zone and is showing signs of slowing down. Besides that, Volume Oscillator struggles to increase in larger volume, depicts a weaker broader trend.
Algorand (ALGO)
Source: TradingView, ALGO/USD
ALGO has formed a rising wedge (white) on its 4-hour chart and saw the expected reversal from the $1.84 mark. The January 5 sell-off served to boost this trajectory as the alt lost almost 30% of its value through January 10.
Since then, ALGO has seen a good recovery attempt as it overturned 20-SMA (red) from resistance to support. The immediate test point for the bulls is now the $1.5 level.
At press time, ALGO trades at $1,436. The RSI stands at 48 after an uptrend. Meanwhile, DMI supported the bears, but ADX show a weak directional trend. Additionally, the recent pullback volume was higher than the buy volume, giving the bears a slight advantage.
Filecoin (FIL)
Source: TradingView, FIL/USD
Alt saw a 31.97% retracement (from Jan. 5) from the critical $35 resistance (previous support). On its 4-hour chart, FIL has seen a breakout of the descending channel (yellow) over the past day.
The 14.4% recovery (from the January 10 low) helped the coin to stave off a further sell-off. However, considering the long-term bearish trends, Super trend seller preference. Immediate testing support currently stands at 20-SMA (glaucous).
At press time, FIL trades at $30.03. The RSI finally crossed the midline and tested the 58 point resistance before falling slightly. More, Momentum Squeeze indicator indicates a period of high volatility by flashing gray dots.