Cardano Price Analysis: ADA/USD looks to snap four-week winning streak
- Cardano stages a technical recovery after upsurge witnessed early-July.
- The correction could continue toward next Fibo support at $0.1120.
Cardano's impressive rally seems to be coming to an end with the ADA/USD looking to snap a four-week winning streak. As of writing, the pair was trading at $0.1221, losing 0.7% and 3.9% on a daily and weekly basis, respectively.
ADA/USD technical outlook
On the daily chart, the Relative Strength Index (RSI) is at its lowest level since late June near 60, suggesting that the bullish momentum continues to fade away. However, ADA/USD continues to trade above key daily moving averages and doesn't provide any convincing signals that the pull-back is anything more than a technical correction.
At the moment, Cardano is trading near the Fibonacci 23.6% retracement level of its latest rally. With a decisive break below that level, ADA/USD could target $0.1155 (20-day SMA) and $0.1120 (Fibonacci 38.2% retracement). On the upside, resistances are located at $0.1300 (static level) and $0.1385 (Jul. 8 high).
Cardano chart (daily)
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
