- Cardano (ADA) has extended the downside correction after strong growth.
- The critical support is created by the psychological $0.1000.
Cardano (ADA) extended the decline and hit $0.1102 on Friday. The coin has lost 20% from the peak of $0.1386 reached on July 8. At the time of writing, ADA/USD is changing hands at $0.1120, down 9% in the recent 24 hours. The coin takes the seventh place in the global cryptocurrency market with the capitalization of $2.9 billion and an average daily trading volume of $535 million.
ADA/USD: Technical picture
On the intraday charts, ADA/USD is moving along the sloping lower line of 1-hour Bollinger Band. The local support is created by a psychological $0.1100. Once it is cleared, the sell-off may be extended towards $0.1060 (1-hour SMA200). and $0.1000. As we have previously reported, this area may be a key for ADA in the short run, however, if it gives way, the sell-off may be extended towards the 50-day SMA at $0.0800.
The downtrend is supported by the RSI’s downward traction. If the RSI keeps retreating from the overbought, it would be a matter of time before ADA hits the support at $0.10. On the other hand, all is not lost for the bulls owing to the fact that the MACD is holding in the positive region. Moreover, bullish divergence hints that buying activities are still present.
If losses continue, support is anticipated at $0.10, the accelerated trendline (broken line), the 50-day SMA, $0.0800 and the main trendline. For now, attention is channeled at defending the short term support at $0.1150 which would then help to shift the focus back to $0.15.