Cardano’s price has been consolidated for over a week now, with ADA continuing to trade close to the $1 price point. Despite the clear bullish momentum on the charts, however, ADA has had to endure a prolonged duration of sideways movements lately.
At the time of writing, the cryptocurrency traded at $0.91, with ADA registering a market capitalisation of over $27 billion. Not only did much of its bullish momentum disappear in the last 24 hours, but the bears of the market appeared to fall into the market again.
Cardano 1-day chart
According to its daily map, the price of ADA lost all the momentum that had fueled its bull run in the first week of February. The price of the crypto was observed to have been consolidated for more than a week after it failed to crack its immediate resistance to ADA’s current ATH. This makes it difficult to predict which direction the coin will take in the coming days. It is also unclear whether traders are likely to gain from a short or long position.
However, keeping in mind the overall market trend, it is fair to assume that, in the coming week, if the coin fails to crack the resistance stage, it is likely to go to $0.76 for immediate support. The next strong support level for ADA was around the $0.38 range, but such a significant price drop can be ruled out under market conditions.
The technical indicators for ADA seemed to suggest a trend reversal. Although the RSI indicator had been in the over-purchased region for a longer period of time, the same was shifting away at press time, suggesting that the market for buyers had been turned into a market for sellers. The same thing was also deduced from the MACD. The indicator may soon experience a bearish crossover as the signal line continued to shift towards the dropping MACD line.
Despite Cardano’s promising success at the beginning of the year, its crypto market seemed to lack the traction to drive the coin above the coveted $1 mark and to transform its immediate resistance to support. Over the next 7 days, if there is no break of the resistance stage, traders should expect a minor price correction to occur as a result of the extended duration of consolidation.
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