Cardano Price Soars, Will Bulls Hold Recovery?

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Car­dano price is being pushed up on the chart by bulls at the time of writ­ing. The day before, Car­dano was up 2% of him. Last week’s alt­coin price action was less than pos­i­tive as it lost most of its gains for the week.

If the recov­ery of buy­ers con­tin­ues, ADA may cross the next resis­tance lev­el. How­ev­er, at the time of writ­ing, ADA was trad­ing flat.

Over the past few weeks, alt­coins have been pinched between $0.50 and $0.44 respectively.

Buy­ing strength has attempt­ed to recov­er on the chart, but sell­ing strength was still dom­i­nant at the time of writing.

Car­dano price sup­port zones are between $0.44 and $0.40 respec­tive­ly. Car­dano is one of the alt­coins that has moved against the tide.

How­ev­er, Bit­coin has shown signs of a rise in the last 24 hours. If the coin buy­ing strength fails to enter the pos­i­tive zone, the ADA bull mar­ket could fade out quickly.

Cardano Price Analysis: 1‑Day Chart

Car­dano was priced at $0.46 on the 1‑day chart. Source: His ADAUSD on TradingView

At the time of writ­ing, ADA was trad­ing at $0.46. In the last 24 hours, the coin has crossed his one of the resis­tance levels.

Cardano’s imme­di­ate resis­tance mark was $0.49. If the bulls man­age to break out of his $0.49 price lev­el, they can stay there for longer.

If no buy­ers step for­ward, Car­dano price will drop to $0.43 and then drop below $0.40.

The amount of alt­coins trad­ed in the past ses­sion has decreased even though buy­ing strength has increased. This meant the dom­i­nance of the sell­er in the market.

technical analysis

cardano price
Car­dano has record­ed an increase in buy­ing pres­sure on the 1‑day chart. Source: TradingView’s ADAUSD

Alt­coins showed signs of recov­ery on the dai­ly chart. Tech­ni­cal indi­ca­tors show that the bulls are in control.

At the time of writ­ing, the Rel­a­tive Strength Index is below the half line, indi­cat­ing that buy­ing pres­sure is still greater than sell­ing pressure.

Car­dano price has bro­ken below the 20-SMA line. This indi­cat­ed that demand fell as sell­ers were dri­ving price momen­tum in the market.

Push from buy­ers could push the ADA above the 20-SMA and 50-SMA lines, inval­i­dat­ing the bear­ish thesis.

cardano price
Car­dano Draws a Sell Sig­nal on the 1‑Day Chart | Source: TradingView’s ADAUSD

The ADA bull mar­ket has yet to gain momen­tum on the 1‑day chart. Unless buy­ers over­whelm the strength of sell­ers, the bulls can­not push the alt­coin price above $0.49.

Mov­ing aver­age con­ver­gence diver­gence indi­cates price momen­tum and price action for alt­coins. MACD has gone through a bear­ish crossover to form a red his­togram which is a coin sell signal.

The Direc­tion­al Index mea­sures the over­all price direc­tion. DMI was neg­a­tive because the ‑DI line was above the +DI line.

The Aver­age Direc­tion­al Index is ris­ing towards the 20 mark, which indi­cates that cur­rent price action is gain­ing momentum.

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