Cardano’s [ADA] price sustained a significant setback after the market-wide meltdown. Following which its price started moving sideways. However, the dull market movement reversed and it underwent a price recovery shortly thereafter. Buyers shunned the negative market trend triggering Cardano to enter a consolidation channel thus helping its price to minimize the weekly losses to a little over 3%.
The shift in momentum was a relief for the ecosystem which depicted renewed buying pressure. Meanwhile, ADA was trading at $0.313 after accruing more than 8.6% in gains over the last 24-hours. In addition, the crypto-asset registered a market cap of $9.77 billion and a 24-hour trading volume of $2.48 billion, at the time of writing.
Will ADA bulls propel a much-anticipated upswing and help the token topple its nearest ceiling?
Cardano [ADA] Daily Chart:
Cardano’s [ADA] relief rally aimed for the recently established multi-year high while anticipating cues for a definitive movement from the wider crypto market. The placement of the moving averages does not suggest any bearish flip.
The 50 DMA [Pink] continued to mimick ADA’s price action while maintaining a steady divergence with the 200 DMA [Blue] as both formed crucial support points for the candlestick arrangement.
The MACD was quite optimistic as continued the bullish journey for two straight weeks above the zero-line showing. The indicator could essentially prompt the buyers in pushing the price north.
The Stochastic RSI also eased the selling pressure as it appeared to undergo a bullish crossover. Moreover, despite the weekend fall, the RSI has continued to hold its fort above the 50-median line which was further indicative of significant buyer demand in the market.
Hence, what remains to be seen, is the impact that the ongoing buying pressure could have on Cardano’s price, and whether the price can break above the present resistance level and help push the altcoin’s price up the charts. ADA was capped at an overhead resistance of $0.332. If it manages to breach this level, the crypto-asset could climb all the way to $0.37, a level last seen in May 2018.
The support levels for the coin stood firm at $0.275 and $0.24 respectively.