- Cardano picks up bids to reverse recent losses, marking another battle with 21-day EMA hurdle.
- ADA bulls stay hopeful within a two-week rising channel and firm RSI, but $0.6200 remains the key resistance.
- Triple bottom near $0.5100 and steady support above $0.5550 keep ADA buyers in play.
Cardano (ADA/USD) gains nearly 0.80% intraday to trade around $0.5850 during Tuesday’s U.S. session, marking its third consecutive attempt to break above the 21-day Exponential Moving Average (EMA) following a two-week uptrend.
The Moving Average Convergence Divergence (MACD) indicator remains bullish on the daily chart, despite showing some weakness on the four-hour timeframe. Meanwhile, the 14-day Relative Strength Index (RSI) hovers near the neutral 50 mark, signaling a potential continuation of the recent recovery momentum.
ADA/USD: Daily chart ignites bullish hopes
Source: Tradingview
A third rebound from the $0.5100 support, alongside a gradually rising RSI and bullish MACD signals—plus a two-week uptrend—keeps Cardano bulls eyeing a break above the 21-day EMA near $0.5900.
A successful breakout could lift ADA toward the downward-sloping resistance from early March, around $0.6200—a crucial level bulls must clear to regain full control. If that happens, upside targets include the 200-day EMA at $0.6860, followed by June’s high near $0.7300.
On the flip side, immediate downside is cushioned by a two-week rising support line near $0.5550, with stronger defense seen around the horizontal zone near $0.5100, in place since early February. A breakdown below $0.5100—though unlikely—could expose ADA to deeper losses toward July and September 2024 highs at $0.4560 and $0.4150, respectively.
ADA/USD: Four-Hour chart favors buyers
Source: Tradingview
On the four-hour chart, Cardano continues to trade within a two-week bullish channel, supported by an upbeat RSI, signaling potential for further gains. Buyers may next aim to break above the six-week resistance line near $0.5980 and the 200-bar EMA around $0.6075. That said, the top of the bullish channel near $0.6200 could act as a strong barrier.
If ADA/USD holds firm above $0.6200, focus would shift back to key upside targets highlighted on the daily chart, including the 200-day EMA at $0.6860 and June’s high near $0.7300.
Alternatively, immediate downside remains limited as long as the price holds above the channel support near $0.5550. A break below this level would bring the $0.5100 support zone back into play, followed by further declines if broken.
In summary, Cardano buyers look set to extend the recovery, but a meaningful reversal of its over 30% yearly loss will likely require a stronger fundamental trigger.
