Cardano’s price hovered with slight upswings during Tuesday’s session. The alt has traded within a constricted range since touching January lows around $0.92. However, selling momentum dominated, forcing the alt to test new 2022 lows of $0.81 in February.
Cardano traded with gains on Tuesday.
Nevertheless, bulls could not sustain ADA’s momentum.
Volatility and risk aversion hinder risk assets’ demand.
The 7th-largest crypto by market value had seen upswings within the past day, changing hands near $0.87 at this publication. Data from analytic platform Messari shows ADA noted a 17.04 billion transactions volume within 24 hours, surpassing Ethereum. The Cardano network trails Bitcoin as far as on-chain activity is concerned.
ADA hovers around new yearly lows, roughly 68% lower from the 9 November ATH at $2.38. Cardano bulls may attempt to prevent further downswings but failed as ADA saw constant selling pressure. Furthermore, the alt has traded beneath the 200-exponential moving average at $1.83 since 21 November. Meanwhile, increased sell-orders might push ADA beneath the new yearly lows around $0.81.
Nevertheless, investors accumulating the altcoin at discounted prices might see ADA testing the horizontal resistance zone at $1.20. Next, market players may target the psychological area at $1.40.
Technical Indicators
- Trading Volume
The volume picks up following the latest fall, and buyers appear to return.
- Relative Strength Index
The daily RSI exhibits neutral bias, hovering around the oversold area. The Relative Strength Index touched oversold levels before the price rose earlier today.
- Moving Average Convergence Divergence
The MACD displays a bearish cross beneath the midline. Meanwhile, intensified bullish momentum might trigger an optimistic cross on the MAs. That would shift the narrative for ADA price.
ADA Near-Term Price Forecast
ADA has to secure dependable support to prevent further downside movements. Contrarily, a relief rally might see ADA climbing towards the resistance of $1.
Conclusion
ADA declined towards the crucial support of $0.85, and the token seems prepared for upside toward the hurdle of $1. Though it’s unlikely ADA will rise past the level, market players can expect price actions towards the zone in the upcoming trading sessions.
