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Cardano price analysis: ADA stays on course to test $0.6 resistance

Analytics

www.cryptopolitan.com 31 July 2022 23:36, UTC
  
Reading time: ~2 m

Cardano price analysis remains bullish, as price continues to trend upwards along a bullish hammer pattern on the daily chart. The extended uptrend initiated on July 27, 2022 with price set at $0.45 and has taken ADA price up to a 30-day high at $0.55. Price at the time of writing is consolidating just under the $0.55 resistance forming a triple top pattern around the mark. ADA price has racked up more than 22 percent over the past 5 days, and could yet rise as high as the $0.6 resistance over the coming week.

The larger cryptocurrency market showed mixed signals over the past 24 hours, as Bitcoin moved closer to the $24,000 mark and Ethereum consolidated at the $1,700 level. Among leading Altcoins, Ripple dropped down to $0.39 with a minor decline, while Dogecoin also dropped slightly to $0.07. Solana dropped 4 percent to $0.44, whereas Polkadot soared almost 6 percent to move up to $9.03.

Cardano price analysis: Cryptocurrency heat map. Source: Coin360

Cardano price analysis: ADA market valuation subsides on daily chart

On the 24-hour candlestick chart for Cardano price analysis, price can be seen forming an extended ascending triangle pattern to reach a 30-day high at $0.55. The uptrend follows a brief sideways pattern that had price stuck between a narrow range around $0.45-$0.50. Price remains above the 9 and 21-day moving averages, along with the crucial 50-day exponential moving average (EMA) at $0.50. The distance between price and 50EMA will be crucial if ADA is to hit resistance at $0.6 over the coming trading sessions.

Cardano price analysis: 24-hour chart. Source: Trading View

The 24-hour relative strength index (RSI) can be seen approaching the overbought zone at 60.09, which could either be a sign of a bullish breakout, or it could drag price downward. The 24-hour trading volume for ADA suffered a 26 percent decline, suggesting traders are holding out to determine the upcoming pattern. Meanwhile, the moving average convergence divergence (MACD) curve remains bullish and can be seen strengthening along a bullish divergence and forming higher lows above the neutral zone.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.


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