Cardano: oversold side is emergingThe price pressures to the downside, after the implementation of the Vasil fork, continued during the previous week. Considering significantly decreased daily trading volumes, the price move to the downside could not be significant. ADA started the previous week above $0.45 support line and during the week reached minimum level at $0.42. Support line at $0.40 has not been clearly tested.
Although RSI is moving around level 40, it has a clear downtrend. Such a move points that the market orientation is toward the oversold side. Moving averages of 50 and 200 days continue for a few weeks to move as two parallel lines with a clear downtrend.
Considering that the $0.40 support line has not been clearly tested during the previous week, increases the probability for ADA to test it in the week ahead. Taking into account significantly decreased trading volumes, there is lower probability that the market will have strength to break this line to the downside. On the opposite side, there is some probability for the $0.45 short term resistance line to be tested for one more time.