Cardano (ADA) has been in a decline since hitting its all-time high on September 2nd, and has almost swung below its 20-50 EMA. The slide was particularly dangerous for the bulls, as they were unable to hold the $1 mark.
A closing over $0.9 would put ADA in a good position for a retest of its Point of Control (POC). Following that, it may experience a drop from near the $1.1-zone and revert to its long-term trend. The world’s seventh-largest cryptocurrency is most likely positioning itself to retake the crucial $1 support (now resistance). It was trading at $0.888 at press time, down 1.2 percent in the previous 24 hours.
Assuming the bulls are committed to keeping the $0.82-mark intact, the alt is targeting a retest of the 20 EMA, followed by a recovery of the $1-support. Before submitting to the downtrend, ADA has historically lifted itself up from the bottom trendline of the down-channel and tested its 50 EMA. The next few candlesticks, on the other hand, would reveal whether history would repeat itself or not.
The negative RSI rose from its oversold level, as projected. Any near above the 38-point threshold will almost certainly result in a retest at the 44-point mark. As the bulls attempted to overturn these barriers, a recovery towards the midline appeared possible in the days ahead.
The DMI reaffirmed the increased bearish sway. The odds of a rebound in the following days are high as the -DI approaches its long-term peak.
Conclusion: While a trend reversal may still necessitate extraordinary efforts on the side of bulls, a test of its Point of Control with a close above the 20 EMA appeared likely in the medium-term. Traders and investors should still keep a careful eye on Bitcoin’s performance, since ADA has a 71 percent 30-day correlation with the king currency.