Coin Edition -
- Cardano’s ADA has found support on its upward trendline, analyst says.
- ADA is set for a potential breakout or breakdown, depending on the price development.
- Breaking above the 50-day SMA could push ADA to $0.4999.
According to Nick Regan, the Cheeky Crypto YouTube channel host, Cardano’s ADA has found support on top of its upward trendline. In a recently uploaded video, Regan used multiple technical indicators to predict the potential price movement that ADA could embark on, depending on the altcoin’s short-term behavior.
Regan’s analysis showed that ADA’s recent bounce off the trendline pushed it toward the 50-day SMA on the daily chart. With this setup, he is watching ADA’s price development to determine a breakout or breakdown.
Regan noted that the trendline started on April 13 and ADA’s price has tested it several times, with the latest test on June 3. He highlighted resistance areas on ADA’s daily chart, citing historical rejections at the 200-day EMA and the 50 SMA.
Regan stated that ADA is at a critical juncture, where it could break out towards the 200-day EMA or break down towards support around $0.3996. However, he favors a potential breakout, focusing on the 50-day SMA. Regan believes closing a daily candle above that level would trigger an ADA rally targeting the 200-day EMA around $0.4999.
ADA traded for $0.4620 at the time of writing amid a sideways trend that has lasted since the middle of April, according to data from TradingView. The top altcoin has struggled to recover the bullish energy of the previous bull market after many months of a severe bear trend.
A potential breakout could push ADA towards higher levels, possibly climbing above the 200-day EMA. That development could open the way for higher rallies in the upcoming bull run, considering how high the altcoin rose during the 2021 bull run.
The post Cardano’s ADA Faces Pivotal Moment: Breakout or Breakdown? appeared first on Coin Edition.