Cardano retested the $ 1 long-term buy range for the sixth time this year. While such a price action is common. The worrying factor is the inverse head and shoulder pattern that is generated in this cryptocurrency.
ADA has received support, but only after holding near collapse levels, which can easily be a setback caused by the closing of the short positions. Cardano has close support and a sustainable range. The technical analysis can be used to identify the buy and sell zones on ADA.
Cardano price analysis
Hitting a high of $ 2.4 and tracking more than 60% of its profits in less than two months indicates the loss of buying interest. ADA’s pricing action looks more like a booking pattern with small profits.
There is strong weakness in its price action, the failure to break through resistance in turn and break through key supports has created a narrow trading zone for investors. Although the idea behind ADA has some potential, it can’t outperform its siblings in the short term due to the technical negativity.
The buy action was initiated after we stayed near the $ 1 valuation, as opposed to severe retracements we experienced on May 19, 2021 and June 22, 2021. The collapse began with the momentum that Cardano failed to sustain its bullish buying sentiment above the USD 1.5 resistance.
After ADA price hit the $ 1 low, it jumped to new levels, indicating a breakout. But this outbreak has to continue to prevent a massive sell-off. Cardano had an excellent run this year and has been unable to maintain breakout levels and push Cardano to new lows, which may add further selling pressure.
MACD suggests some hope for a retracement, but the crossover line is in the negative quadrant, so it is wiser to wait for the breakout zone to persist. A daily close above USD 1.40 indicates positive buying sentiment. For the time being, investor hopes depend on whether this withdrawal is loud ADA predictions. The RSI suggests a breakout of oversold zones towards 40 and may push ADA further towards oversold zones.