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Cardano (ADA) Price Created a Big Bearish Candle Last Week, What Next?

The Cardano (ADA) price was rejected by long-term resistance and created a large bearish candle. Is ADA’s uptrend over?

Weekly Outlook

The ADA price has been trading within the range of $0.25 to $0.43 since October 2022. After 59 weeks, ADA experienced a breakout above the range with a large bullish candle. This indicates that the bulls have gained control, and ADA might have initiated a new long-term uptrend. It implies that any price declines will be viewed as corrections within the overall upward trend.

However, ADA faced rejection at the significant next resistance level at $0.68 (red arrow) and formed a large bearish candle last week.

The weekly RSI has dropped below the 70 level and is declining, suggesting weakening bullish momentum.

Therefore, the ADA price might continue to adjust towards the previous range’s resistance at $0.42.

As the 20-week EMA coincides with this range, the bulls are likely to buy aggressively when the price reaches there.

ADA/USDT weekly chart . Source: TradingView

Bullish Divergence

ADA’s 4-hour chart indicates some bullish signals, evident in both price action and the RSI indicator.

After recent strong selling pressure, the 4-hour RSI formed a bullish divergence within the oversold region. This occurred simultaneously with ADA bouncing from the previous small resistance zone at $0.46.

Thus, the ADA price could rise to the nearest horizontal resistance at $0.53.

ADA/USDT 4-hourly chart . Source: TradingView

Conclusion

The most probable scenario suggests that the ADA price will continue to adjust towards the previous range’s resistance at $0.42. However, it may rise to the nearest horizontal resistance at $0.53 before continuing the downward trend.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

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