ADA Price Consolidates, Can Cardano Bulls Restart Rally?

ADA price has entered into a range right below a critical resistance level, which has suppressed its price for the last three weeks. More node operators migrated to v9.1.0, bringing the total number to 79%. Overall, Cardano price increased over the last 24 hours, possibly due to the Elon-Trump interview highly anticipated by the entire crypto community.

ADA Price Under Pressure, Bulls Still Optimistic

The price of ADA rose to $0.337 early Tuesday morning, and the entire crypto market cap rose by 1.8%, potentially due to Elon Musk interviewing Donald Trump.

Meanwhile, the Cardano community still anticipates the Chang hard fork, as 79% of node operators have migrated to the new v9.1.0.

🚨 UPDATE: #Cardano Node Version 9.1.0 = 79% #ChangHardFork https://t.co/7axFUfrJ2p pic.twitter.com/uoGOXQsH5N

— Cardano Feed ($ADA) (@CardanoFeed) August 11, 2024

However, Cardano price chart analysis shows these developments may not provide enough juice for the intense bear pressure on the asset.

Cardano Price Struggles to Break Free

According to Cardano technical analysis, the price is currently bearish in the short term since it has recently broken down from a rising wedge pattern. This breakdown suggests further potential downside.

The breakdown from the rising wedge is significant. The measured move from the wedge’s height indicates a potential further drop of approximately $0.048, which puts the ADA price target around $0.280.

Cardano price is trading below the 50-day EMA ($0.345) and the 200-day EMA ($0.378), reinforcing the bearish trend. Additionally, the 50-day EMA is below the 200-day EMA, which is often seen as a bearish sign.

Cardano faces some resistance around the 50-day EMA and the 200-day EMA, with support levels appearing around $0.28 and near $0.25, where previous consolidation took place.

The Relative Strength Index (RSI) at 40.42 is close to the oversold territory, indicating that while the bearish momentum is strong, the asset could be nearing an area where buyers may step in.

Further, the Chaikin Money Flow is at -0.14, indicating that more capital is flowing out of ADA than into it, which aligns with the current bearish sentiment.

If the price of ADA rises and holds above the range, it could signal an increase in market strength, which would invalidate the current bearish thesis. ADA would rise to $0.376 and higher to $0.42.

Bulls Betting on ADA Price to Rise Higher

Cardano bulls remain optimistic that the price will rise higher as data from Coinalyze shows that 69% of investors are Long on the asset. 

Additionally, the ADA open interest (OI) increased by 1.67% in the last 24 hours, suggesting that money flowed into Cardano. The Long/Short ratio for ADA increased, suggesting that investors are opening Lons betting the price will rise higher.

Further, Cardano’s active address count registered a 20% uptick in the last 24 hours, suggesting an increase in investor interest.

Cardano is currently affected by the broader market movements. If the market turns bullish, then ADA price may break above the key suppressing resistanc e level and make new monthly highs in August.