Cardano [ADA] has managed to stay afloat despite a market downturn. ADA went on to become the third-largest cryptocurrency by market cap on the leaderboard after surpassed Binance Coin [BNB] and Tether [USDT].
The crypto-asset finally breached the $1-milestone on the 26th of February after a fresh wave of optimism and buying volume. This eventually pushed ADA to hit an all-time high above $1.4 before hitting a minor retracement owing to the pressures in the broader cryptocurrency market.
Cardano [ADA] took a plunge of 14.48% over the last 24-hours and was currently changing hands at $1.25. It recorded a market cap of $38.47 billion and a 24-hour trading volume of billion, at the time of writing.
Is Cardano primed for more gains or a bearish reversal around the corner?
Cardano [ADA] Price Chart
Cardano [ADA] went on a parabolic run as it established a fresh high. The ADA candles formed an ascending channel pattern on the daily chart. By convention, the pattern formation depicts a bearish breakout in the inkling.
The moving averages are yet to identify a reversal in the trend, as the gauge between the 50 DMA [Pink] and the 200 DMA [Purple] continued to rise as they settled below the ADA price candles.
Cardano did see some sideways price movement during the week with the weakness generated from the market-wide pullback. However, after brief downtrend, the Awesome Oscillator flipped to green bars depicting a shift to bullish momentum.
The MACD also bounced back up suggesting a growing demand in the ADA market. Furthermore, the RSI was found to be well above the 50-median line even as it witnessed a minor drop from the overbought zone. This was indicative of a consistent buying sentiment among the Cardano investors.
The above charts essentially signaled that ADA still has room to push higher before becoming extremely overbought, meaning that the current bull run can continue beyond its recently formed ATH.
Looking ahead, the first resistance lies directly at the peak price of $1.49. However, if the bulls fail to defend the current price level the crypto-asset could target its immediate support levels of $0.942, $0.708, and $0.63 respectively.