- The 100-day SMA limits ADA’s upside.
- MACD shows that market momentum is about to reverse from bullish to bearish.
Cardano found support at the $0.076 support line and bounced. As of press time, ADA is trading for $0.107 and is consolidating between 100-day SMA ($0.114) and 50-day SMA ($0.097). The MACD shows that market momentum is on the verge of reversing from bullish to bearish. As such, we can expect ADA in the near future.
ADA/USD daily chart
As per IntoTheBlock’s IOMAP, the Ethereum killer has strong resistance at the 100-day SMA. Previously at this level, 5,200 addresses had purchased 2 billion ADA. On the downside, if ADA falls, it will drop till the 50-day SMA. A further break below that will take the price to the 200-day SMA ($0.09). Any break below that could be catastrophic as it will take ADA down to $0.076.
ADA IOMAP
The 3-day chart further corroborates our bearish thesis. After struggling to break above the 50-bar SMA, the TD sequential indicator has flashed the sell signal (green 9). This can trigger a potential drop to the 100-bar SMA ($0.075) and 200-bar SMA ($0.067)
ADA 3-day chart
The Flipside: Can the buyers salvage this?
The buyers can turn this narrative by flipping the 100-day SMA ($0.114) from resistance to support. If they break this level, then they should take the price up to the $0.125 barrier. Looking at the weekly chart, the bulls will need to flip the 50-bar SMA ($0.107) to initiate their rally.
Key price levels to watch
The sellers will be able to assert their dominance by dropping ADA below the 50-day SMA ($0.097), but we can effectively cut off the downside at the 200-day SMA ($0.09).
For the bulls, their main am will be to flip the 100-day SMA ($0.114) from resistance to support. Upon doing that, they should take the price up to $0.125.
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