- ADA bulls push prices from a support level of $0.25 to an intraday high of $0.2681 in the last 24 hours.
- Technical indicators suggest caution as bullish momentum wanes.
- Will ADA’s support hold, or will the bulls swoop in to break through resistance?
Cardano (ADA) has maintained its strong trend in the previous 24 hours, rising from $0.2599 to $0.2681 before witnessing a modest retreat. A bullish breakthrough over the $0.2681 resistance level might set sights on the $0.2750 resistance level.
This breakout might draw additional purchasers, driving up the price of Cardano even more. Consequently, ADA was trading at $0.2612 at press time, up 0.52% from its previous low.
ADA’s market capitalization and 24-hour trading volume increased by 0.96% and 15.04%, respectively, to $9,161,041,700 and $162,043,670. This surge reflects the greater interest and activity in the ADA market, which may lead to a favorable market mood and increased purchasing pressure.
ADA/USD 24-hour price (source: CoinMarketCap)
The stochastic RSI, meanwhile, is trending south with a value of 24.55, indicating that the ADA’s price may face a short-term downward correction. This pattern might be attributable to profit-taking by traders after the recent price increase. If the negative trend continues, it may be a buying opportunity for investors looking to enter the ADA market at lower prices.
Furthermore, the Moving Average Convergence Divergence (MACD) has moved below its signal line, reading -0.001, reflecting a bearish indication. This negative trend lends credence to the prospect of a short-term drop in the price of ADA. The histogram is additionally negative, indicating a possible decline in purchasing pressure and an increase in selling pressure.
ADA/USD price chart (source: TradingView)
ADA’s 2-hour price chart’s 20-day moving average is above the 100-day moving average, indicating a positive short-term trend. However, bullish momentum wanes as the shorter moving average is heading south (now at 0.263). This trajectory might result in reversing the short-term trend and a move toward a pessimistic outlook for ADA’s price.
A value of -1.13 for the Fisher Transform indicator on the ADA 2-hour price chart indicates that this negative momentum is growing. This pattern shows that the price of ADA may face a retracement soon. Reestablishing a bullish view necessitates the shorter moving average to resume its upward trend and the Fisher Transform indicator to return to positive territory.
ADA/USD price chart (source: TradingView)
In conclusion, while Cardano’s ADA has shown strength, caution is advised as indicators hint at potential short-term corrections before assessing renewed bullish momentum.
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