Cardano Price Analysis: Continuing This Downtrend ADA Coin Will Go Back To The $1 Mark

The ADA coin investors had experienced a serious roller coaster ride in these last five months. The rally initiated at the end of July and made an All-Time High of $3; however, the price has lost almost all those gains in the downfall between September- December till(now). However, a piece of good news for the ADA coin is. It launched its first decentralized exchange SundaeSwap, to the Cardano testnet.

Key technical points:

• The ADA coin shows the 50-and-200-day EMAs are on the verge of a death crossover
• The RSI line has started to display positive sign in its chart
• The intraday trading volume in the ADA coin is $2.45 Billion, indicating a 16.69% gain.

Source- ADA/USD chart by Tradingview

The last time when we covered an article on ADA/USD, the coin price was plotting a bullish reversal from crucial support of the $1.5 mark. However, this plan didn’t go well, and after facing a strong rejection from the 20 EMA line, the price started to drop again, and with the help of the blood bath of December 4th, the coin breached this support level as well.

As for now, the coin price is plunged to the $1.25 support level, where it displays several lower price rejection candles, indicating the presence of strong demand pressure. The crucial EMA level(20, 50, 100, and 200) confirms this downtrend as the price moves below the 200 EMA. Moreover, we can soon expect a death crossover of the 50-200 EMA attractive even more sellers in the coin.

The Relative Strength Index(29) at this oversold territory shows the RSi line is not resonating as the price action, suggesting the bears are getting exhausted.

ADA/USD 4-hour Time Frame Chart

Source- ADA/USD chart by Tradingview

The ADA coin price is quite near to a crucial support level of the $1 mark. However, what stands between their ways is the last crucial EMA support of $1.25; the coin price is currently trying to sustain above this level. 

The important levels for the coin on the upside are at $1.5, followed by the $1.7. And, on the lower side, the support levels are at $113 and $ 0.85. mark.