Cardano (ADA) Targets $1.75 Only if This Indicator Meets a Condition
Cardano (ADA) coin remains capped in the short-term by the 200-hours simple moving average across the board, as the bulls struggle to make another rally above such an indicator. The recovery from the lows of November 29 seems to be limited by a price action that lacks momentum.
There was a bullish divergence in the RSI indicator spotted in the H1 chart during the last week of November, which unleashed the ongoing recovery of the cryptocurrency. Still, the price is trapped into a rangebound and erratic price action.
Is ADA Preparing a Bullish Scenario?
Although the resistance area at $1.63 is solid, it’s a risk to be cracked by the buyers in the short term once the RSI indicator makes another consolidation above the equilibrium zone of 50, which could eventually lead to a rise towards the $1.70 area.
With such a move, ADA could materialize a short-term golden cross with the 50-hours simple moving average that could trigger more buying demand, leading to another rally towards $1.75.
As long as the coin remains capped by the sellers around $1.75, the broad perspective remains neutral, as ADA doesn’t show clear signs to consolidate above $2.00 yet in the near term ahead of the year-end.
Aiming For The $1.20 Level?
On the flip side, if the $1.55 level gives up in favor of the sellers, doors will open for more bearish pressure towards the next tough nut to crack set at $1.50.
To shift towards a completely bearish stance in the short term, ADA should pierce below $1.40 to aim for the $1.20 zone, returning to a non-directional zone.
The pessimistic outlook gets reinforced with an inverted hammer formed around the 200-hr SMA, implying a possible reversal in the making. After that, however, the RSI indicator should enter the negative territory with its slope pointing downwards to strengthen even more its bearish stance.
This article was originally posted on FX Empire
