The technical indicators show signs of recovery in the price of Cardano, pointing to the dominance of the bulls in the market. Since the ADA bulls have not gained momentum yet, they cannot push the price above USD 0.49 if buyers do not overpower sellers.
The bulls have driven the value of Cardano (ADA) higher, recently taking it up by 2%. Over the last week, the price action of the altcoin was not optimistic as it lost most of its gains.
Although the constant buyer rally might push the price beyond its next resistance level, ADA has been trading sideways.
Over the last few weeks, the value of ADA has been between USD 0.50 and USD 0.44, respectively.
The buying strength has tried to rally, but sellers still dominate the market.
The price of Cardano is at the support zone between USD 0.44 and USD 0.40, respectively. ADA has been among the altcoins that have survived the overall market decline.
However, Bitcoin (BTC) has shown appreciation over the last 24 hours. The ADA bulls may disappear quickly if the buying strength of the crypto asset does not enter the positive zone.
One-Day Chart of the Price of Cardano
ADA is trading at around USD 0.4587 and has broken through one of its resistance levels over the last 24 hours.
If the Cardano bulls broke down the immediate resistance mark at USD 0.49, they might stay put for longer.
If buyers did not arrive, the value of ADA would drop to USD 0.43 and then below USD 0.40.
Despite an increase in buying strength, the amount traded decreased, indicating that sellers dominate the market.
Technical Analysis of the Price of ADA
The technical indicators and the one-day chart showed signs of recovery in the price of the altcoin, pointing to the dominance of the bulls.
The Relative Strength Index (RSI) is below the midline, indicating that buying pressure remains higher than selling pressure.
The price of ADA is below the 20-day SMA line, suggesting lower demand as sellers create price momentum.
Buying pressure might lead ADA to reach above the 20-day SMA and 50-day SMA lines, invalidating the bearish thesis.
The Cardano bulls have not gained momentum on the one-day chart yet. They will not be able to push the price above the USD 0.49 mark if buyers do not overpower sellers.
The moving average convergence divergence (MACD) is a metric that indicates the ADA price momentum and price action. It experienced a bearish crossover and formed red histograms, which signaled selling pressure on the crypto asset.
The Directional Movement Index (DMI) is an indicator that measures the general direction of the price of ADA. It was negative since the -DI line was above the +DI line.
The average directional index (ADI) moved toward the 20 mark, signaling that the price action is gaining momentum.
Investors should research ADA or any other crypto assets before buying it to know their all-time high, behavior, and possible future price. That will help them find the most convenient investment opportunity to minimize the risk of losing money.
By Alexander Salazar