Cardano had an interesting last week whereby it rose into the fifth spot on the market despite the freefall in price. The staking platform boasts of a market cap of $48 billion and trails immediately behind Binance Coin.
The trading last week was gruesome not only for ADA but the entire crypto market. From the recently traded all-time high of $2.5, ADA plummeted to the support at $1.1.
However, the downswing appears to have allowed more investors to enter the market at a lower price, explaining the reflex recovery to $1.6. Moreover, a highly is formed on the chart and is likely to bolster Cardano significantly.
Cardano bulls focus on sustaining a pattern breakout
The recovery included the breakout from the pattern stalled within a whisker of brushing shoulders with $1.6. Perhaps the overhead pressure came from the resistance at the 200 .
Meanwhile, Cardano must bring down the resistance at the 200 on the four-hour chart and close the day above $1.6 to validate the anticipated liftoff. The Moving Average Convergence Divergence ( ) has a outlook, cementing the prevailing technical picture.
Looking at the other side of the picture
The ( ) emphasizes the growing overhead pressure following the rejection at $1.6 and the 200 . Its retreat below the midline is a vivid picture that cannot be ignored. Therefore, investors should be prepared for the leg to extend to $1.4 and $1.1 levels, respectively.
Cardano intraday levels
Spot rate: $1.5
Support: $1.4 and $1.1