Cardano (ADA) has been moving in southward directing since it hit an all-time high of $2.51 on May 16. It plunged sharply between May 16 and May 19.
Reports suggest that the cryptocurrency dropped as much as 65 per cent in three days after it hit its peak value. As a result, this led to a low of $0.91 on May 19. Despite the drop, the cryptocurrency has validated the previous all-time high resistance area of $1 as a support.
As per a report on beincrypto, “The MACD has created a lower momentum bar but has not given a bearish reversal signal. The RSI is decreasing but has generated hidden bullish divergence.”
Cryptocurrency trader @CryptoCapo showed how bullish the trend was. “This is because the price has re-tested the previous all-time high resistance area, potentially validating it as support,” beincrypto report stated.
The daily trading chart is not sufficient to identify the trend. Since February 3, Cardano has bounced at an ascending support line in place, while on the other hand, technical indicators are bearish. This is especially evident by the bearish cross of the Stochastic oscillator, the report stated.
On Saturday evening, ADA was trading down by 0.3 per cent at $1.49.