Cardano (ADA) price gave a dramatic breakthrough from the falling parallel channel pattern on July 18th, with a considerable increase in volume activity. Earlier, the post-retest rally showed a 12% increase, allowing it to retest the R8.42 resistance. However, the sellers defending this level prevent buyers from regaining it.
For more than a month, the ADA/USDT pair has been resonating in a downward parallel channel in response to recent market turmoil. Furthermore, under the impact of the pattern, the altcoin retested the May low of R6.73 and confirmed it as legitimate support.
Since last week, market sentiment has improved, triggering a new recovery bounce in ADA. On July 13th, the coin price rallied from the R6.73 support level and rose 32% to the R8.42 level.
Furthermore, the in-between recovery rally provided a bullish breakthrough from the falling channel, indicating that purchasers intend to rise higher. However, the post-retest rise has halted at R8.42 resistance, and the higher price rejection attached to the daily candle suggests that supply pressure is still present.
As a result, the likely reversal might drive the coin price down below R8.12 and extend the lateral stroll for a few more sessions.
On the other hand, if buyers overcome the selling pressure and close a daily candle above R8.42, the renewed bullish momentum may propel the ADA price 21.5% higher to R11.11.
MACD indicator: the fast and slow lines intersect in the neutral zone’s neckline, indicating a potential purchase signal among crossover. Furthermore, the rising green bars in the histogram chart indicate a consistent positive trend.
EMAs: The 20- and 50-day EMAs have been acting as dynamic resistance to the ADA price since early April. However, the recent recovery has transformed these resistances into credible support, allowing buyers to extend this rally.
R9.09 and R11.11 are the resistance levels.
Levels of support: R8.12 and R7.58.