Cardano (ADA) is showing early signs of a possible bullish move after several weeks of sideways trading. As of March 17, the token is trading at $0.2823 with a 24-hour trading volume of $1.45 billion and a capitalization of $10.33 billion, representing 0.41% of the overall cryptocurrency market. The token gained 1.34% in the past 24 hours.
Cardano Faces Key Resistance at $0.304
Cardano is showing signs of a potential bullish breakout following 45 days of sideways price action, according to a recent post by crypto analyst Ali Charts. The key resistance at $0.304 marks the upper boundary of this consolidation, and a clear move above it could trigger renewed upward momentum for the cryptocurrency.
If $0.304 is breached, ADA could rapidly move toward liquidity gaps at $0.338 and $0.376, offering short-term targets for traders. The potential breakout could lead to the token experiencing a surge in buying interest, indicating the end of the consolidation phase.
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Breakout Requires SMA And Trendline Breach
Analysts indicate that a confirmed breakout would require a daily close above $0.31, as well as a break through the descending trendline. Additionally, ADA must be able to close above the 20-Day Simple Moving Average. If this is achievable, ADA is likely to rise rapidly towards $0.332 and even $0.377, reaching the liquidity gaps formed previously.
On the downside, if ADA is unable to break through the $0.30 resistance level, it is likely to fall back towards $0.27. The support at $0.24 is likely to be the last support level for ADA before it falls further towards $0.22.
Although ADA is experiencing a series of gains in recent years, the overall sentiment in the Cardano market is still cautious. Cardano is still respecting its rising trendline around $0.24. This is an indication that the overall sentiment is still in a consolidation phase.
ADA is in a critical phase as it tries to maintain a balance between further upward movements and corrections. A breakout above $0.31 is likely to result in further bullish sentiment in ADA.
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