Cardano (ADA): weakness is holdingA positive market sentiment from the beginning of this year has slowed down a bit during the previous week, influenced primarily by the SEC`s moves toward the staking crypto products. A call from SEC Chair Gensler to crypto businesses is to follow regulation on all products with “lend, yield or earn” words and register them with the SEC. During the previous few weeks, ADA made progress toward the $0.40 resistance line, however, during the previous week, the coin reverted a bit to the downside and level of $0.36, where the coin is finishing the week.
The RSI indicator was pushed to the down side and below the level of 50, reaching 47, which might be an indication that the market is slowly starting to look at the oversold side. Moving averages of 50 and 200 days continue to slowly converge toward each other, with still some distance between the lines, in which sense, the potential cross is still on a longer road.
Moves from the previous week are just small market corrections. Current charts are still not clearly pointing that the $0.40 resistance has lost its momentum. Support line at $0.35 might be tested during the week ahead, but there is no indication on charts that this line might be breached to the downside. On the opposite side, resistance at $0.40 might easily be tested again.
