Cardano Price Hints 12% Upswing In Near Term; But Here’s A Catch

Over the past seven months the Cardano price has showcased a very classic example of a steady downtrend. Thus, the consecutive lower highs and lower low formation in ADA price action have plunged the coin to recent low of $0.24 registering 92% loss from the all-time high of $3.1. This ongoing downfall is evidently displayed by a downsloping trendline connecting the peaks of lower highs. The altcoin have reverted from this  trendline multiple times indicating the traders are actively selling at this dynamic resistance.

Key points:

• The rising ADA pride breaks local resistance of $0.266, offering an additional confirmation for prolonged rally.
• The reclaimed 20-day EMA slope offers additional support for buyers to carry a bullish rally.
• The intraday trading volume in the ADA coin is $275.4 Billion, indicating a 24% gain.

Source- Tradingview

Amid the recent new year recovery in the crypto market, the Cardano price rebounded from the new low of $0.24 and triggered a new relief rally. Over the past ten days, the coin price has gained 24% and current exchange hands at $0.288.

Moreover, the increasing volume backing up this rally indicates sustained recovery in the short term. This, if the market condition remain bearish, the altcoin would continue a temporary rally to the overhead trendline before resuming its downward spiral.

This, the potential rally may surge the 10-12% higher to revisit the resistance trendline.

However, even if the aforementioned trendline is carrying the current downtrend, it’s known in technical analysis that no trend stays forever.

Also read: Top 10 DeFi Lending Platforms In 2023

Thus, a possible breakout from this above trendline will project an early sign of trend reversal. Moreover, the sidelined traders waiting for an entry opportunity can also consider buying at the resistance breakout.

Technical Indicator

Relative Strength Index: the daily RSI slope shows a sharp jump above the midline(50%) indicating the rising bullish momentum. The indicator in positive territory increases the likelihood of a potential rally. 

EMA’s: the downsloping EMA’s(20, 50, 100, and 200) does the same work as the above mentioned trendline. Each of these EMA’s is a significant resistance trying to undermine bullish growth. Conversely, the rising prices reclaimed 20-day EMA which now bolster buyers for price recovery.

Resistance levels– $0.3, and $0.328

Support levels- $0.267 and $0.241