The digital asset of Cardano (ADA) has been stuck within a falling wedge with a genesis in late May after TerraUSD (UST) and Terra (LUNA) crashed the entire crypto markets. Cardano has since been forming lower lows in what looks like an extended pullback running almost six months, as seen in the one-day ADA/USDT chart below courtesy of Tradingview.com.
A Resolution of the Falling Wedge Could Result in Cardano Moving Towards $0.40
Also, from the chart, it can be observed that Cardano remains in massively bearish territory below the 50-day (white), 100-day (yellow), 200-day (green) and 200-week (red) moving averages. Furthermore, Cardano’s daily MACD confirms an ongoing pullback that could result in a retest of November’s low of $0.2953.
However, Cardano’s daily MFI (green) and RSI (red) hint at renewed buying that could push ADA/USDT from current levels of $0.3086 towards the 50-day moving average of around $0.35.
If the latter plays out, Cardano could break past the falling wedge’s upper boundary and keep pushing toward the $0.40 resistance area.
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