Cardano price is showing early signs of recovery after breaking the resistance line of an old bearish trend, thus bringing hope to the investors that this recent price decline may come to an end soon. Better technicals and rising buyers’ interest, along with a bullish break from a crucial moving average, indicate that ADA may continue moving up.
At the time of writing, ADA is trading at $0.1896, with a 24-hour trading volume of $1.10 billion and a market capitalization of $6.91 billion. Despite gaining strength from recent technical improvements, ADA is down 3.29% over the last 24 hours, showing that the market is still looking for a stronger confirmation of a sustained recovery.
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Cardano Price Breaks Out of Long-Term Downtrend
The crypto analyst BATMAN noted that ADA finally succeeded in breaking out from the downward channel within which it had been confined for quite some time. As per BATMAN, the breakout gained more significance after ADA broke out above the 200 Exponential Moving Average (EMA).
BATMAN further noted the existence of a classic bullish divergence of the Relative Strength Index (RSI), which typically occurs as price moves down while the selling force starts weakening. This is usually seen as a signal of an impending takeover by the buyers.
Since the current price level for ADA is above the 200 EMA line, the moving average has become supportive rather than resistant. While the price is holding above the line, the buyers have the potential to drive it further up.
Technical Indicators Support the Recovery
Technical analysis also highlights growing strength in the Cardano price. The Cardano price has been trading in the range from $0.18517, the daily low, to $0.19481 until it settled at $0.18909. This price is trading above the mid Bollinger Band, valued at $0.15936, and trying to test the upper Bollinger Band around $0.18806.
Testing the upper Bollinger Band implies growing buying pressure on the coin. Nevertheless, experts emphasize that ADA should be trading above the mentioned level to show its strength to continue recovering.
Meanwhile, the MACD is indicating a positive sign because the MACD line at 0.00723 has crossed above the signal line of -0.00279, and the histogram has gained strength up to 0.01002. Green bars of the histogram indicate growing strength for buying, which can continue in the coming periods to further strengthen the recovery of ADA.
Will Cardano Price Continue Higher?
It seems like the coming few sessions will tell if the Cardano price will be able to make the recent breakout move into a stronger reversal.
If ADA maintains itself above the 200 EMA and manages to close above the upper Bollinger Band, then buyers might aim at some higher targets.
However, if the buying sentiment starts to diminish and the price slides under the important level of support once again, the asset can start showing some consolidation before making another attempt at rising.
At the current moment, taking into account the breakout from the channel, an improvement in momentum indicators, and the resumption of buying sentiment, we can say that the Cardano price is about to enter a more favorable technical stage.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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