Cardano price pulls back steeply after gaining momentum to hit a fresh 7-month high, as it breached consequent resistances. There happens to be an S/R flip as the previously formed resistances act as the major supports as the price of ADA coin corrects downsides.
Cardano Price Analysis
Analyzing the 5-hourly chart of ADA/USD on Kraken, we see that the coin had gained enough momentum when Cardano had hit fresh highs and was trading in the green for five days straight. On the way downwards, Cardano has immediate support awaiting at $0.055. Alongside this, we have also seen Bitcoin and many other altcoins facing rejections after hitting fresh highs in the past 10 days. ADA is supported by a 200-day daily moving average and holds a safe crossover as the 50-day MA crosses above the 200-day MA.
However, the steep fall has led the Cardano coin to test supports that were previously formed resistances.
Taking a glance at the 2-hourly movement of ADA over the past 17 days, we see that the currency has faced a major pullback recently. From mounting at $0.0722 to bottoming out a $0.0560, the coin has lost over 20% value in a matter of just 3 days as it lost pace after a continuous market pump.
Technicals:
The MACD of Cardano is running below zero and holds a bearish crossover due to the intraday dip faced.
Similarly, the RSI of the coin is at 33.15, and it around the major support at 30, exhibiting the selling pressure due to lack of support.
