Cardano

Daily

The Cardano (ADA) price is down 46% since its yearly high and is currently facing a make-or-break price level for a bullish reversal. Here’s what you need to know: 
<h2 id="cardano-price-analysis-daily-chart">Cardano Price Analysis: Daily Chart</h2> 
The daily ADA/USD chart is currently charting a path within a descending channel, which has defined the bearish trend since the beginning of March. On Monday, the ADA price peaked near $0.475, encountering substantial resistance at the channel’s upper boundary and from the critical 20-day Exponential Moving Average (EMA), which stands currently at $0.47. 
<img loading="lazy" decoding="async" class="wp-image-607031 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-44-49.png?resize=3628%2C1673" alt="Cardano price" width="3628" height="1673" srcset="https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-44-49.png?resize=3628%2C1673?w=3628 3628w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-44-49.png?resize=3628%2C1673?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-44-49.png?resize=3628%2C1673?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-44-49.png?resize=3628%2C1673?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-44-49.png?resize=3628%2C1673?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-44-49.png?resize=3628%2C1673?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-44-49.png?resize=3628%2C1673?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-44-49.png?resize=3628%2C1673?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-44-49.png?resize=3628%2C1673?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
In the short-term, this resistance level is crucial as it coincides with historical price rejection points, confirming its significance. As of press time, ADA is trading at approximately $0.44. 
The convergence of the 20-day EMA ($0.47), 50-day EMA ($0.54), and 100-day EMA ($0.51) above the current price level illustrates a dense zone of resistance. The 200-day EMA at $0.52 reinforces this barrier, emphasizing a strong <a href="https://www.newsbtc.com/news/cardano/cardano-bottom-price-for-ada/" target="_blank" rel="noopener ">bearish momentum</a>. 
The Relative Strength Index (RSI) on the daily chart is currently at 38, which does not venture into the oversold territory (below 30) but indicates a bearish momentum with potential for further decline unless a reversal occurs. 
For a bullish reversal, ADA needs a sustained break above the $0.47 mark (20-day EMA) with accompanying high volume to confirm the breakout from the descending channel and shift the market sentiment. Then, the cluster of EMAs becomes the central <a href="https://www.newsbtc.com/analysis/ada/ada-price-prediction-0-428/" target="_blank" rel="noopener ">resistance zone</a>. 
Crossing this band is of utmost importance in order to build up bullish momentum for a break above the yearly high of $0.81 from March. If not, the ADA price could trend towards the midline of the channel and drop below $0.40. In-Depth Weekly Chart Overview 
Transitioning to the weekly chart, the broader picture also underscores the bearish sentiment that has dominated ADA since it reached its peak at $3.17 in late 2021. The series of lower highs and lower lows is a textbook representation of a downtrend. 
<img loading="lazy" decoding="async" class="wp-image-607030 size-full" src="https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-45-11.png?resize=3628%2C1673" alt="Cardano price" width="3628" height="1673" srcset="https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-45-11.png?resize=3628%2C1673?w=3628 3628w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-45-11.png?resize=3628%2C1673?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-45-11.png?resize=3628%2C1673?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-45-11.png?resize=3628%2C1673?w=860 860w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-45-11.png?resize=3628%2C1673?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-45-11.png?resize=3628%2C1673?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-45-11.png?resize=3628%2C1673?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-45-11.png?resize=3628%2C1673?w=1140 1140w, https://www.newsbtc.com/wp-content/uploads/2024/05/ADAUSD_2024-05-08_11-45-11.png?resize=3628%2C1673?w=3000 3000w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
The price action currently remains suppressed below the long-term moving averages: the 20-week EMA at $0.52, 50-week EMA at $0.48, 100-week EMA at $0.51, and 200-week EMA at $0.52, all of which slope downwards, underscoring the persistent selling pressure in recent weeks. 
The Fibonacci retracement levels, drawn from the high of $3.17 to the low of $0.22, provide further insights. Currently, ADA trades near $0.44, which is above the major psychological and technical support at $0.40. 
The closest significant Fibonacci retracement level is the 0.236 level at $0.918, which ADA has struggled to surpass. A breach above this level could open the path toward higher Fibonacci levels at $1.348 (0.382) and $1.697 (0.5), which would require a significant shift in momentum and buying interest. 
Overall, for ADA to shift from its bearish constraints, attention should be focused on the daily resistance at roughly $0.47 (descending channel breakout). Overcoming this barrier would be pivotal for confirming a <a href="https://www.newsbtc.com/news/cardano/cardano-comeback-analyst-reveals-why-its-time-to-get-back-into-ada/" target="_blank" rel="noopener ">bullish reversal</a>. Until this level is decisively broken with substantial volume, the outlook remains tilted towards bearish continuation.

Cardano Update: ADA Faces Make-Or-Break Price Level For Bullish Revival

Table of Contents

NewsBTC

Other articles published on May 8, 2024

Unprecedented Bitcoin (BTC) Buying Spree by Crypto Whales: Latest Market Data Reveals

New Crypto Casino TG.Casino Becomes Regional iGaming Partner of AC Milan

Sharp Declines in Meme Tokens’ Value

Institutional Bold Bet: Susquehanna Pours $1.1 Billion Into Spot Bitcoin ETFs

Terra Luna (LUNA) Price Soars 4% Amidst Governance Hurdles: Can the Momentum Continue?

Unlocking the Future: Memereum’s Crypto Presale 2024 – Redefining DeFi With Insurance, Lending, S...

Join our free newsletter for daily crypto updates!