Cardano (ADA) has been very resilient on the crypto market registering a 1.12% increase over the last 24 hours to trade at $0.426502. Despite fluctuating market conditions, this upward movement is a pretty modest one with Cardano traders closely monitoring the main resistance and support lines that would define ADA’s short-term trajectory.
Trading above a 20-day EMA, ADA is facing resistance at $0.44.
At present, Cardano encounters considerable resistance at the level of $0.44. Thus, it should be able to break out and consolidate its gains above that mark to maintain bullish momentum. Conversely, if it fails to break through this point, then there may be a possibility of retesting lower supports; while breaking below this could send prices toward $0.40 threatening an end to the recent recovery.
The four-hour chart demonstrates supportive sentiments as it also shows that Cardano remains above the 20-day EMA which is located at $0,41713. As long as prices remain above these moving averages, this indicates bullish sentiment. The current price level is further fortified by slight uptrends on hourly charts for 50-,100- and 200-day EMAs.
Relative Strength Index (RSI) is currently reading at 69.44 which means that it’s near the overbought area giving space for more uptrend until we reach overextension levels in the markets. The MACD line stands at –MACD signal – .01300 vs – .00006 respectively indicating an increasing buying momentum.
In total, there were substantial trading volumes for ADA amounting up to $436m worth traded in less than one day meaning positive moves might have resulted from active trader participation.
Possible Market Moves and Trading Strategies
A successful breakout beyond the resistance level of $.044 can form a basis for targeting between $.045-.046 ranges where traders must look out for any close above $.044 with strong conviction. This could draw further buying interest and enable ADA to make bigger gains.
On the other hand, if ADA fails to hold on above the $0.42 support level, it may collapse down to the $0.40 mark. However, this might happen in case of negative general market sentiments or profit-taking sales at current levels.
A buy strategy can be considered provided this coin does not drop below the $0.42 support area and a move past $0.44 takes place. However, traders may want to set stop-loss orders just below 0.42 to prevent downward reversions from occurring.
Cardano has its challenges now but has strong fundamentals as well as an active community which makes me think long term is positive for this token. As cryptocurrency evolves and grows, Cardano stands ready to leverage new possibilities that arise in decentralized applications as well as smart contract innovations being made around the world today.
