2021-12-11 04:32:19

Cardano price is sell on bounce at $1.50, as ADA bears refuse to give up yet

  • Cardano price rebounds on Saturday but is not out of the woods yet.
  • Oversold RSI cautions ADA bears, as price wavers in a bearish channel.
  • $1.52 is a tough resistance while $0.93 offers strong support to ADA price.

ADA price is attempting a bounce from weekly lows so far this Saturday, snapping a two-day downtrend. The broad upswing seen across the crypto market is coming to the rescue of ADA optimists.

Cardano price is finding support from CryptoCompare’s recent Asset Report, which showed that the number of active addresses on the Cardano Network quadrupled from October to November, as on-chain activity picked up and transaction fees on the network dropped from $0.45 to $0.38 on average.

Despite the encouraging news, a convincing recovery appears elusive, as the technical setup continues to remain in favor of the bearish traders.

Cardano price could likely rebound amid oversold conditions

As observed on the daily chart, ADA price is trading at the midpoint of a one-month-long falling channel, which aligns around $1.20.

The 14-day RSI is seeing a fresh uptick while still within the oversold territory, backing that a rebound in ADA price.

The recovery momentum, however, could gain traction if ADA bulls recapture the $1.40 resistance on a sustained basis.

Buyers will then challenge the powerful upside barrier at $1.52, which is the confluence of the falling trendline resistance and the bearish 21-Daily Moving Average (DMA).

A daily closing above the latter will confirm a falling channel breakout, opening doors towards $1.85, where the 50 and 200-DMA hang around.

ADA/USD: Daily chart

However, should the bulls give in to the death cross-driven bearish momentum in play, the December 4 lows of $1.13 could cap the immediate downside.

Further south, sellers will look to test $1.00, July lows, below which the falling trendline support at $0.93 will be the last line of defense for ADA bulls.

All in all, the path of least resistance appears to the downside for ADA price, with every bounce seen as a good selling opportunity for the traders.


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