- ADA/USD bounced from a low of $1.33 to a high of $1.71, all within Saturday’s intraday session
- The ADA/BTC pair is trailing at 0.0000401 with a loss of 2.47% press time
- The Alonzo test net will finally allow developers to deploy their own decentralized applications on the Cardano Blockchain.
This week’s crypto crash rolled out an unflattering price action for ADA concerning the indecisiveness in the Market. After breaching the critical resistance of $1.47, ADA bulls successfully established an ATH of $2.46 last week. However, it didn’t take much time for the bears to prevail, and price action went south soon after that.
Despite ADA’s significant efforts on attempting a reversal on Thursday, the price action maintained its bearish streak the following day.
The daily chart of ADA forecasts a temporary comeback based on the fact that the price action sustained above the key support level of $1.47. An unstable reversal can be justified by forming a hammer candlestick at the critical support level and the upending bullish crossover on the Stochastic RSI. ADA needs to steer clear of the bearish FIB 0.032 retracement because it is in confluence with the 200 SMA. A violation of this level would expose the token to the outrage of the bears.
ADA ON THE 4-HOUR CHART
The price action of ADA on the 4-hour chart projects a contrasting scenario as evidenced by the two chart patterns above. The first layout demonstrates the possibility of a potential bullish harmonic pattern. Until now, the price action has been successfully maintaining its momentum inside the pattern. Presuming that the bulls step up and continue to accelerate, the ADA price can retrace back to its Thursday’s high, which is convergence with the 0.618 Fib at $2.02. On the other hand, the second layout indicates that the price action has already entertained a head and shoulder pattern. Although the current price of ADA is above the neckline at press time, a touchdown at the resistance of $1.79 suggests the odds of ADA backtesting the resistance and eventually heading towards the downside. The failure of ADA to sustain above the support trend line could establish a groundwork for a 30% decline. The technical indicators favor the bulls as exhibited by the MACD, which is on the verge of transpiring a bullish crossover. This crossover would shift the histogram back in the positive territory. The RSI has gradually made its way into the equilibrium territory after an oversold situation. SMART CONTRACTS ARE COMING TO CARDANO THIS SPRING Charles Hoskinson- the CEO of IOHK, claimed that the Alonzo testnet would launch on 31st May. The success of this testnet will finally allow developers to deploy their own decentralized applications on the Cardano Blockchain. Since the current price of ADA discloses indecisiveness, the launch of the Alonzo testnet could act as a catalyst in shooting its price. Read more about it hereSUPPORT : $1.47, $1.32RESISTANCE : $2.02, $2.46