Cardano price analysis: ADA faces bearish pull back after hitting $0.55 resistance

Cardano price analysis shows price hitting roadblocks after breaching the previous resistance point at $0.55. ADA receded to as low as $0.5457 over the past 24 hours, enduring a 3 percent decline. Seller pressure seems to be building on the token after an impressive run over the past 3 days that took price to as high as $0.5941 yesterday. ADA bulls remain keen on pushing price upwards to the next resistance point at $0.70, but the $0.55 demand zone remains crucial to prospects and any uptrend will materialise after price settles above this mark.

The larger cryptocurrency market declined overall over the past 24 hours, led by Bitcoin’s drop down to the $24,000 mark. Ethereum also remained bearish, moving down 2 percent to $1,900 in its pursuit of the $2,000 mark. Among leading Altcoins, Ripple lowered 2 percent to $0.37, whereas Dogecoin dropped 3 percent to $0.77. Meanwhile, Solana also shed 3 percent to move as low as $43.95, while Polkadot moved down to $8.79, with a 2 percent downtrend.

Cardano price analysis: Cryptocurrency heat map. Source: Coin360

Cardano price analysis: Evening Star pattern appears on ADA daily chart

On the 24-hour candlestick chart for Cardano price analysis, price can be seen swiftly changing trends over the past 24 hours with sellers returning to the market following ADA’s increase above $0.55. Price is becoming pushed back below this important point and could move as low as $0.50 over the next 24 hours in terms of bearish outlook. However, ADA price continues to sit above the 9 and 21-day moving averages, along with the crucial 50-day exponential moving average (EMA) at $0.5430.

Cardano price analysis: 24-hour chart. Source: Trading View

The evening star pattern to confirm change of trend is also backed by the 24-hour relative strength index (RSI) that shows a dipping line over the day’s trade to come down to 60.29. The RSI had stretched deep into the overbought zone following yesterday’s break past $0.55, whereas trading volume dropped over 27 percent today to justify the slip. However, the moving average convergence divergence (MACD) curve continues to form higher lows to stay above the neutral zone and remain bullish. The $0.55 support now remains critical for ADA buyers and the next support level will be found at $0.50 if this point is breached over the next 24 hours.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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