Cardano: emerging selling orders
ADA had a relatively solid week. Although its price was suppressed to the downside and the lowest weekly level at $0.37, still the coin managed to make another move toward the $0.40 resistance line as of the end of the week. Highest weekly level was $0.41. Still, as of the weekend, selling orders started to emerge, which might impact the price of the coin at the start of the week ahead.
Three weeks ago RSI was in overbought territory, so it was expected that the indicator will take the road to the downside. During the previous week, RSI was still weakly holding above the level of 50, with indication that there is no strength for the upside. Positive development is that MA50 continues to diverge from its MA200 counterpart, and supports the Golden cross.
After reaching a clear overbought side, ADA entered into a cycle of short reversal. Current charts are indicating lower probability that the coin will be able to clearly break the $0.40 resistance line in the coming week. There is a higher probability that the price will shortly revert to the downside, at least till the $0.37 level, with lower probability that the support line at $0.35 might be tested.
Three weeks ago RSI was in overbought territory, so it was expected that the indicator will take the road to the downside. During the previous week, RSI was still weakly holding above the level of 50, with indication that there is no strength for the upside. Positive development is that MA50 continues to diverge from its MA200 counterpart, and supports the Golden cross.
After reaching a clear overbought side, ADA entered into a cycle of short reversal. Current charts are indicating lower probability that the coin will be able to clearly break the $0.40 resistance line in the coming week. There is a higher probability that the price will shortly revert to the downside, at least till the $0.37 level, with lower probability that the support line at $0.35 might be tested.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.