Cardano: A close below this mark would bolster a further pullback
Cardano (ADA) has been on a near-term downtrend after recently breaking down from the ascending channel on its 4-hour chart. Meanwhile, it found a base at its vital $1.02-support.
If the 20 EMA (red) falls below the 200 EMA (green), ADA looked at a further downfall in the coming days. While the Bollinger Bands (BB) refrained from high volatility, the alt could see a bullish resurgence from the $0.9-$1 zone. At press time, ADA was trading at $1.033.
ADA 4-hour Chart
Source: TradingView, ADA/USDT
The latest bullish phase saw an unrestrained rally from its mid-March lows. It was up by over 58% from these lows until 31 march. During this phase, ADA tested the $1.2-resistance and formed an ascending channel (yellow) on its 4-hour chart. As a result, it broke down from the pattern while the buyers defended the $1.02-level.
The 6 April sell-off fueled its bearish inclinations as it recorded losses of 15% in the last five days. Thus, its price action fell below its 20/50/200 EMA and traded near the lower band of the Bollinger Bands (BB).
As the sellers flipped the 200 EMA from support to immediate resistance, the buyers needed to ensure the $1.02-level. A close below this mark would bolster a further pullback towards the $0.9-zone. For the bulls to reignite their hopes for a trend change, they needed to amplify the current trading volumes and reclaim the 200 EMA level.
Rationale
Source: TradingView, ADA/USDT
The RSI has been on a rather slow recovery from 7 April. Since then, however, the price has been on a downslide. Thus, revealing a possible hidden bearish divergence should the RSI fall from its immediate trendline resistance. At the very least, these readings exhibited a bearish inclination in the short term.
Also, the CMF looked
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