Cardano price stabilizes above key support as RSI recovers, EMAs compress and MACD improves, but stacked ask walls and strong resistance still limit breakout potential.
Summary
- RSI has rebounded from oversold into the low 40s, while the 9-day EMA starts to curl up against a still-descending 20-day EMA.
- MACD histogram is expanding positively below zero, signaling early bullish momentum inside a broader downtrend.
- Order-book data shows strong bid walls below and dense ask liquidity above, creating a tight range where failure at resistance risks renewed downside.
Cardano’s price action entered a stabilization phase on the daily chart following a period of sharp volatility, according to technical analysis from Ecoinimist.com.
The cryptocurrency’s recent closes reflected attempts to maintain position above short-term support levels, with the Relative Strength Index (RSI) rebounding from oversold territory into the low-40s range, indicating a reduction in selling pressure that characterized recent trading sessions.
XRP price trending down over 20-day EMA
Technical indicators showed the 9-day Exponential Moving Average (EMA) beginning to curve upward, while the 20-day EMA continued trending lower. The narrowing gap between these two averages typically precedes significant price movements, according to technical analysis patterns.
The Moving Average Convergence Divergence (MACD) indicator displayed positive histogram expansion across multiple sessions. Both the MACD and signal lines remained below zero, reflecting the broader downtrend, though the increasing distance between histogram bars and the zero line suggested growing bullish momentum attempts.
Cardano’s (ADA) price structure remained confined between established support and resistance levels. The token maintained stability above its nearest key support level during recent sell-offs. Multiple resistance zones marked areas of previous selling activity and represented barriers to potential trend reversal.
Liquidity data revealed several significant bid and ask walls. On the bid side, the largest defensive wall sat below current price levels, representing substantial token volume. On the ask side, multiple stacked liquidity clusters presented obstacles to upward price movement, with the largest ask wall positioned as a critical threshold for potential acceleration.
Technical analysts noted potential trading scenarios based on current indicators. A retest of key support zones paired with stabilizing momentum could signal rebound opportunities, while failure to break through immediate ask-side liquidity or repeated rejections at resistance levels might indicate continued downward pressure. A breakdown below key support would expose the token to deeper support levels aligned with major bid walls.
The broader trend remained under bearish control despite early stabilization signs, according to the analysis. Price action remained capped under major resistance and exposed to downside liquidity risks. EMA compression and MACD progression were identified as key indicators for determining whether stabilization would evolve into trend reversal or renewed selling pressure.
Cardano, a proof-of-stake blockchain platform, has experienced significant price fluctuations in recent trading periods alongside broader cryptocurrency market movements.
