Cardano is currently facing resistance near the 50-day Simple Moving Average (SMA) on the daily chart, which presents a significant decision point for traders. The price has been trading in a short-term range of $0.42 to $0.52, with pressure at the upper range. The failure to break above this level indicates a lack of strength in the market.
As of writing, ADA/USD is trading at $0.48, with a 0.21% daily increase. However, the 24-hour volume has dropped more than 24%, suggesting that the current upswing may not be sustainable.
If Cardano manages to breach the 50-day SMA, the bulls could have momentum towards $0.51, followed by the February 13 high of $0.56. This view is supported by the Relative Strength Index (RSI), which indicates a bullish bias.
On the other hand, if bearish sentiment dominates the market, ADA may fall towards the immediate downside target of $0.45, which is the level of the May 17 candle. This would validate a range-bound market structure, with the bears potentially pushing towards the key support zone of $0.42.
In summary, Cardano’s price is at a critical juncture, with a battle between bulls and bears. If the price convincingly trades below the 50-day SMA, the bears would gain the upper hand. The 50-day SMA currently holds at $0.48, with the price trading below it at the time of writing. The RSI (14) is above 50, indicating a bullish bias.
Support levels for ADA are at $0.46 and $0.42, while resistance levels stand at $0.50 and $0.52. Traders should closely monitor the breach of the 50-day SMA for potential trading opportunities.