The crypto market has seen no positive action since Wednesday, May 4, with most major coins remaining in the red. Cardano (ADA) is one exception, however, as the altcoin has seen a slight uptick over the past few days.
After trading above the $0.76 price point multiple times, the coin bounced, reaching a high of $0.7941 on May 7. However, as of this writing, the coin has pulled back below $0.78.
At the moment, it remains to be seen whether ADA can consolidate above the immediate $0.76 support area and continue its upward momentum. With no major news or catalysts on the horizon, it seems likely that the coin will remain range-bound in the near-term.
That said, on the daily chart, the digital asset is trading within a classic descending wedge pattern where the upper line represents overhead supply and the lower line represents rising demand, a technical dynamic which might lead to upside momentum.
Still, the moving averages are yet to show a bullish crossover which could come into existence if prices close and sustain trading above $0.80. The immediate resistance lies at $0.90 and a break above this level will trigger further long positions with targets aligned at $0.95 and then $1.00 levels. In a highly bullish case scenario, the run-up might extend to $1.25, constituting a 39% gain.
On the other hand, if prices correct lower from here, support lies at $0.70, followed by the $0.65 area. A break below these levels will call for further weakness in prices with bearish targets seen at below the $0.60 level over the longer term period of time.
Price Action
ADA gained 0.81% during today’s trading and changed hands at $0.7826, trimming its weekly decline to about 3.70%. The $26 billion market cap coin, whose market dominance remains at 1.60%, traded in a range of $0.7657 – $0.7941, indicating a relative high level of volatility over the last 24 hours.
Disclaimer: This article is provided for informational purposes only. It is not intended to be used as investment or financial advice
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