Search ForexCrunch
  • Cardano is trading under growing resistance following rejection at the triangle pattern’s descending trendline.
  • An upswing is expected to kick in at $0.14, with support provided by the 200 SMA and the ascending trendline.

Cardano is hunting for formidable support after hitting yet another barrier at $0.16. A breakdown that seems to have been validated is likely to test support at $0.14 before giving way for a significant rebound.

Cardano prepares for a short-term downswing

The aspiring smart-contract token is trading at $0.15 at the time of writing. The 100 Simple Moving Average is limiting price movement immediately on the upside. Simultaneously, overhead pressure is intensifying after the rejection suffered at the descending trendline of the symmetrical triangle.

Close support is envisaged at the 50 SMA, but if broken, the bearish price action may test the anchor at $0.14, as highlighted by the ascending trendline in conjunction with the 200 SMA.

The Moving Average Convergence Divergence, often referred to as the MACD, adds credence to the pessimistic outlook.

This technical indicator follows the path of a trend and measures its momentum, and it seems to be flipping bearish within the same time frame. As the 12-day exponential moving average crossed under the 26-day EMA, the odds for a bearish impulse increased significantly.

XRP/USD price chart

ADA/USD 4-hour chart

Robust support is anticipated at $0.14, as explained above. This will result in a considerable rebound to highs beyond $0.16. Trading above the symmetrical triangle pattern may place Cardano in a trajectory for gains aiming for $0.18 and $0.2, respectively.