Following the Securities and Exchange Commission’s (SEC) restrictive classification as a security, Cardano‘s ADA, under heavy selling pressure, continues to operate above its firm support at $0.24. The popular altcoin has seen a string of short-bodied and high-wicked candles over the last six days, indicating uncertainty among market participants.
Cardano Price Analysis
Cardano made contact with its $0.24 support on June 10, producing a long tail rejection candle. The buying pressure that followed the significant sell-off primarily stemmed from investors accumulating at discounted prices. Consequently, the ongoing bearish trend coupled with the accumulation evident in the demand from buyers, has resulted in ADA‘s price moving sideways. If the selling pressure continues to escalate, the price could plunge another 8%, leading to a revisit of the $0.24 support.
A re-test at such a critical support level could potentially provide additional validation for a relief rally in Cardano. However, such a rally may be limited by the descending trend line that has consistently been causing a downturn on the daily price chart over the last two months.
Can Cardano Price Surpass $0.35?
The current sideways movement in ADA’s price may serve to balance out the expected buying pressure built up after the excessive sell-off surrounding the popular altcoin. The battle between buyers and sellers appears to trigger a range formation between $0.3 and $0.24. However, for the buyers to drive the price beyond the $0.35 level, a breakout around $0.3 is necessary, which requires surpassing the overall trend line.
On Cardano’s daily price chart, the Relative Strength Index (RSI) is in the oversold zone, exhibiting volatile movements due to overselling conditions. Hence, a balance between buying and selling pressure is crucial for a sustainable upward trend. Furthermore, the 20-day Exponential Moving Average (EMA) is likely to serve as dynamic resistance against any potential uptrend amid strong sell-offs.
