Cardano (ADA): back on the trackThere was no clear reason why investors were heavily moving out from ADA two weeks ago. During this time ADA reached a new historically lowest level at $0.33, while moving in a strongly oversold market. Previous week changed significantly market sentiment, which allowed ADA to be back on the track. The coin managed to make a significant move from $0.35 up to $0.45. The confidence was initially lost, but it swiftly managed to come back.
Significant move in the price pushed the RSI indicator from the oversold market back to the level of 58. The market is currently eyeing the overbought side. Moving averages of 50 and 200 days did not change their path at all and continue to move as two parallel lines with clear downtrend.
ADA just went through significant recovery. The level of $0.45 was significant for ADA as the coin spent a lot of time around it in the past months. It could be expected that the market will continue to test this resistance line in the coming days. There is some potential for this level to be broken to the upside, but it would require strong buying placements on the market. On the opposite side, a short term support line at $0.40 might be tested for one more time.