Cardano Likely to Resume the Bullish Trend, Once It Overcomes the 20 Daily SMA
Cardano trying to turn bullish, but the 20 SMA keeps providing resistance
Cardano surged from around $0.16 at the end of last year, to 2.46 until the middle of May, when the largest part of the crypto market started retreating lower. The big fall came later, in the third week, following the crash in the crypto market.
Cardano fell from the highs to 1.03, which means a loss of around 60% of the value. The price pierced the 100 SMA (green) on the daily chart, but it pulled back that same day and closed way above it, so that didn’t count as a break.
The price bounced higher the next day, but the 20 SMA (gray) turned into resistance at the top, and that moving average has been keeping the ADA/USD subdued, preventing it from resuming the larger bullish trend. Although, the uncertainty in this market has also kept buyers in check.
Cardano Live Chart
The price returned back down, but the 100 SMA held once again, and for a third time, at the end of May. So, this moving average has turned into the ultimate support for Cardano, while the 50 SMA (yellow) has taken over in the last several days.
So, Cardano is being squeezed by the moving averages as well now, and a breakout is expected to take place soon, which I think will be to the upside. We might open a buy Forex signal if we see another retreat to the 100 SMA though.
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