Rejection at 100-HMA calls for a test of the $1 mark
- ADA/USD’s bias shits to the downside after rejection once again at 100-HMA.
- Cardano charts a rising wedge breakdown on the hourly chart.
- Bears test 50-HMA while the RSI stays within the bearish zone.
Cardano (ADA/USD) extends Friday’s sell-off, as the bearish momentum picks up pace on Saturday, with deeper losses likely on the cards.
The fourth most widely traded crypt currency has lost 19% of its value over the past seven trading sessions. It’s worth noting that the token has gained 720% since the start of the year amid a broad crypto market rally.
ADA/USD: Eyes $1 on a sustained break below 50-HMA at $1.1445
As observed on the hourly chart, ADA/USD’s outlook appears bearish in the near-term, as the pair has confirmed a rising wedge breakdown earlier this Saturday.
The natural tendency of this formation is to yield a downside break. Therefore, the sellers remain in control, although they need to find a strong foothold below the downward-sloping 50-hourly moving average (HMA), now at $1.1445.
Acceptance under the latter could trigger a sharp sell-off towards the $1 mark, where the pattern target coincides.
The Relative Strength Index (RSI) looks south, below the midline, suggesting that there is a scope for additional losses.
The sentiment around the spot turned in favor of the bears after the price failed once again at the bearish 100-HMA, currently at $1.1881.
ADA/USD: Hourly chart
Alternatively, the pattern support now resistance at $1.1737 could check any upside attempts.
The bearish bias will remain intact until the ADA bulls break above the abovementioned 100-HMA barrier on a sustained basis.
The next bullish target awaits at $1.2179, the horizontal 200-HMA hurdle.