Technical Analysis for ADAUSD for 6th May 2022
Cardano Bulls Stand a chance if ADA is above $0.75
Past Performance of ADA
ADA prices are down eight percent at spot rates following high volatility on May 4 and 5. While the crypto market unexpectedly dumped yesterday, ADA bulls stand a slight chance. Prices are still within the May 4 bullish bar, a bullish development from a technical perspective. Still, whether ADA will recover depends on if buyers can sustain prices above this week's lows of $0.75.
Cardano Technical Analysis
From an effort versus results perspective, ADA bulls surprisingly have the upper hand--at least as price action stands. Even though trading volumes are significantly higher on May 5, prices are inside the bullish engulfing bar of May 4. As a result, buyers may buy the correction only if prices are above the immediate support at $0.75. A recovery may see ADA prices float to this week's highs of $0.90, breaking above the multi-week resistance line marked by the 20-day moving average. In this case, ADA may rally to April 2022 highs of $1.20. Conversely, losses below $0.75 offer an opportunity for sellers to add to their shorts, targeting new 2022 lows of around $0.70—or worse.
What to Expect from ADA
ADA prices are dangling at around 2022 lows. A recovery prints a double bottom, a lifeline for buyers who expect prices to float higher towards $1. However, if ADA slips, it could fall to register new 2022 lows.
Resistance level to watch: $0.90
Support level to watch: $0.60
Disclaimer: Opinions expressed are not investment advice. Do your research.
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