ADA has continued on a downward spiral after achieving a record high on the 16th of May 2021. Cardano ADA has declined abruptly from the 16th of May and the 19th of May, further validating the prior highest resistance as support. Nonetheless, the future direction is still in the air as technical indicators have failed to confirm that.
$ADA movement over an extended period
The record high for Cardano ADA is $2.51 recorded on the 16th of May, 2021. But, the movement after was in a decline, so much that ADA lost 65% of its value after 3 days. The fall led ADA to $0.91 which was recorded on the 19th of May. The 7 days time frame follows a bearish reading for ADA as a lower price may be anticipated. Although Cardano ADA has authenticated the prior record high resistance at $1 considered as support.
The indicators are something of a mixed bag as reading are not promising but nothing substantial to take for granted from the reading. As RSI decreased but also generated a concealed bullish divergence, whereas as stochastic oscillator had the same decreasing reading but the bearish cross was not made yet. Lastly, MACD formed a lower momentum bar. However, fail to give a bearish reversal sign.
Henceforth, a lower time-frame reading is needed to establish the future direction of the movement. @CryptoCapo a digital asset trader, highlighted the Cardano ADA chart that states the direction of the trend to be highly bullish. This reading from the chart is the result of the ADA retesting the prior record high resistance and possibly validating the area as support.
The in-progress bounce
Looking at daily charts is not the most suitable way of determining the ongoing movement. On one side of the spectrum, Cardano ADA has managed to bounce at an increasing support line since the 3rd of February. While in contrast indicators are producing bearish signals. This can be seen by the bearish crossover in the stochastic oscillator.
Henceforth, the likelihood of another retest to materialize is equally probable. The support line concurs with the prior highlighted extended support near $1.
Because of this even when indicators show a scarcity of verdict. One can think of the ongoing trend as bullish until the price of trading remains above the support level.
The chart of ADA/Bitcoin represents a bullish trend compare to the US Dollar counterpart. Even though the recent poor run of form the token sits comfortably above 3,800 SATS, authenticating it to be a support.
Before last week movement, RSI represented a bearish divergence, whereas the indicators are now hinting towards a bullish trend. Because of the recent slump, it has panned out. The subsequent resistance place can be found near 6,150 SATS as both the Stochastic oscillator and MACD report encouraging feedback.