Cardano (ADA) Recovers From Lows, Strongly Bearish Below $1.90

Cardano’s coin (ADA) is recovering from the lows hit over the week at $1.70 after a rebound performed today and now exchanges hands at around $1.86.

However, the price is currently forming a lower low pattern that could unleash a continuation of the bearish sequence that got strengthened from the highs of November 9th.

In the midst of the rebound, ADA eyes the 50-period simple moving average at the H4 chart, around the $1.95 level, where a dynamic resistance acts as a strong barrier to overcome for the weak buyers at this stage.

What’s The Catch With The Bulls?

In addition, the RSI indicator is also trying to gather pace and could be poised to rally further towards the $2.05 level, where the 200-period simple moving average lies.

If the RSI’s slope consolidates above the 50 level, the bulls could strengthen, and eventually, Cardano’s coin could be on its way to hitting the highs from November 9th at $2.37. Still, after such maneuver, the cryptocurrency will remain trapped into a rangebound stage unless it pierces above $2.37.

What About Eyeing The $1.30 Level?

When ADA materializes such a move, eyes will be on the next critical psychological level at $2.50, followed by the $2.65 zone. That scenario could add more fuel to the building of the bullish structure that could unleash more buys for the midterm in the crypto.

From a bearish point of view, if the $1.70 level gives up and the bears strengthen further, the crypto will eye the next tough nut to crack around $1.60. Also, if the bearish scenario persists with lower lows’ formation in the middle of the decline, ADA could likely plummet to test the $1.30 level before the end of the year.

At this stage, it’s also discarded a stagnation phase because the volume is high, and the on-chain metrics say that ADA is currently treading volatile waters. Moreover, there is a death crossover of both 50 and 200-period SMAs.