- ADA/USD attempts a bounce above 100-DMA on Saturday.
- Cardano wavers within a descending triangle formation on the 1D chart.
- RSI trades flat below the midline, keeping the bullish potential limited.
Cardano (ADA/USD) is snapping its four-day losing streak, attempting a minor recovery on Saturday amid a sluggish tone seen across the crypto market.
Earlier this week, the fifth most widely traded crypto currency’s market capitalization of $49 billion surpassed that of the crypto exchange, Coinbase Global Inc., by $1.5 billion.
Cardano is down about 3% over the week, having risen 750% from the start of the year amid increased demand from millionaire investors.
ADA/USD: Clings to 100-DMA, where next?
As observed on Cardano’s daily chart, the price has bounced off key support, although struggles to find a strong foothold above the 100-Daily Moving Average (DMA) at $1.4242.
If the bulls succeed to extend the recovery above the above level, a test of the falling trendline resistance at $1.5107 will be inevitable.
A descending triangle breakout will get validated on a daily closing above the latter, opening doors towards the 21-DMA at $1.5908.
The horizontal 50-DMA at $1.6277 will immediately challenge the road to recovery.
ADA/USD: Daily chart
On the other hand, a downside breakout from the triangle will be confirmed on a decisive breach of the horizontal trendline support at $1.3743.
Sellers will then gear up for a test of the $1.30 mark, with further weakness likely to recall the May 24 low of $1.2555.
The 14-day Relative Strength Index (RSI) holds the bearish zone, still keeping the sellers’ hopes alive and kicking.