ADA Loses 5% Daily but is the Uptrend at Risk? (Cardano Price Analysis)

In the past week, ADA has lost momentum and now the uptrend is put at risk.

Key Support levels: $0.45, $0.38

Key Resistance levels: $0.55, $0.66 

Despite the good show of strength from bulls in mid-July, the confidence quickly evaporated as soon as the price hit the critical resistance at $0.55. Bears appear to be in control of the price action and may put a halt to the uptrend established since early July. If successful, they might push ADA back to the $0.45 support level.

Chart by TradingView

Technical Indicators

Trading Volume: The selling volume increased over the weekend, and the price action quickly reacted.

RSI: The daily RSI is falling to 50 points. If the RSI manages to find support around this area, then buyers still have a chance to reverse this correction.

MACD: The daily MACD remains bullish, but the histogram is already making lower highs which shows the buy momentum is fading. Buyers have to return to ADA soon, or the bears will punish them.

Chart by TradingView

Bias

As long as ADA remains in this flat trend, the bias is neutral.

Short-Term Prediction for ADA Price

While bulls had a good attempt to move ADA’s price above the key resistance at $0.55, they failed to push through. Now, the price is rolling over, and bears may capitalize on this opportunity to test the key support again. Cardano is still within the same price range set in May and, to date, has failed to break away.