Chart by TradingView
After a long time, Cardano finally managed to break above $0.55, and the price is now testing this critical level as support.
Key Support levels: $0.55, $0.50
Key Resistance levels: $0.66
The fourth attempt to break the critical resistance was successful, and ADA managed to rally above $0.55. If the cryptocurrency manages to confirm it as a support, then the buyers might have a new target in front of them at $0.66.
Looking at the current price action, it’s important to remain very vigilant as the entire market is going through a correction, and it’s necessary to see when the bulls will step up again.
Trading Volume: ADA’s increase above $0.55 came as a result of a strong buying volume over the past three days. However, the sellers have returned to the market with their current attempt to push the price back below the important level.
RSI: The daily RSI reached 64 points and made a higher high. This is bullish, and so long it stays above 50 points, the buyers would likely maintain the upper hand.
MACD: The daily MACD remains bullish, but the momentum faded today. This puts some pressure on the previous upwards momentum.
The bias for ADA is bullish.
With a successful breakout, ADA turned bullish. The biggest question is if buyers will be able to defend the critical support at $0.55. If not, the next level of support is found at $0.50. It’s also worth noting that the current pullback in ADA might be a result of the broader market correction as BTC and ETH dip lower as well.
