- Cardano price bounces off a monthly low, pausing a two-day losing streak, as 100-day EMA defends buyers.
- Bearish momentum indicators and triangle breakdown challenge ADA buyers below $0.8600.
- Cardano’s downside break of the 200-day EMA poses a serious threat to its three-month recovery.
- ADA is at a crossroads, with bulls and bears equally poised to take control, urging caution from traders.
Cardano (ADA) price remains sidelined around $0.8250 after hitting a monthly low, struggling between the 100-day Exponential Moving Average (EMA) and a seven-week ascending trendline support, now resistance.
Also read: UAE Signs Crypto Data-Sharing Agreement under CARF, First Swap in 2028
Still, a clear downside break of a seven-week triangle formation and bearish signals from the 14-day Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) momentum indicators suggest the continuation of the previous downtrend.
The bearish sentiment for Cardano is further supported by a strong trading volume and downbeat market capitalization (market cap). According to Santiment, Cardano’s daily trading volume remains sturdy around $1.39 billion, after rising to a month’s high the previous day, showing upbeat trader participation. That said, the market cap drops to the lowest level since September 06, close to $29.51 billion as we write.
Notably, the ADA still defends its early July bullish breakout above the 200-day EMA and maintains a three-month uptrend, challenging the bear’s return to the throne.
Cardano Price: Daily Chart Points To Trader’s Dilemma
Cardano’s breakdown of a seven-week symmetrical triangle joined bearish MACD signals (Red) and a downbeat RSI line, below the 50.00 neutral figure, to facilitate sellers as they hit a monthly low.
However, the ADA’s failure to provide a daily closing beneath the 100-day EMA support of $0.8075 raises hopes of a corrective bounce in price toward the support-turned-resistance line surrounding $0.8600.
If the quote fails to recover from the 100-day EMA, the 200-day EMA level of $0.7677 will be decisive to watch. A clear break below this could expose Cardano towards the $0.5100-$0.5120 support zone, which has held since February.
In the process, the ADA bears may take a breather around the previous monthly low of $0.6839 and the $0.6000 psychological magnet.
Meanwhile, Cardano’s successful trading beyond $0.8600 enables it to reclaim the $0.9000 threshold before approaching the stated triangle’s top, surrounding $0.9420.
Beyond that, a downward-sloping trendline from early March, close to $0.9840, acts as the final line of defense for the bears before highlighting the yearly peak of around $1.1750, with the $1.0000 psychological magnet likely acting as an intermediate halt.
Cardano Price: Four-Hour Chart Lures Sellers
Unlike the daily chart, Cardano’s four-hour chart shows a more bearish setup, with no clear downside support and stronger bearish signals from the MACD.
Still, the oversold RSI line, surrounding the 30.00 lower limit, challenges immediate ADA downside near the 61.8% Fibonacci Retracement of its August upside, near $0.8120.
Below that, the 78.6% Fibonacci ratio of $0.7554 and the previous monthly low of $0.6839 could test the bears before directing them to the deeper levels discussed on the daily chart.
On the contrary, ADA recovery remains elusive below the $0.8600 support-turned-resistance. Adding to the upside filter is the 200-bar EMA level of near $0.8630 and the 100-bar EMA hurdle of $0.8735.
Should Cardano price remain firmer past $0.8735, the bulls will have additional upside strength to target the daily chart’s higher levels.
Conclusion
Cardano (ADA) is at a pivotal point, with bearish momentum challenging its recovery. While the 100-day EMA offers some support, a sustained drop could lead to further losses. However, if ADA can regain resistance levels, a recovery may be possible. Traders should remain cautious as ADA’s next move will depend on whether it holds support or breaks lower.
Also read: Why is Crypto Falling Today? BTC falls 3%, ETH slips 7%, XRP down 6%
