Chart by TradingView
After a tense few days where bulls had to defend the key support, Cardano is giving signs it may attempt to rally.
Key Support levels: $0.45, $0.38
Key Resistance levels: $0.50, $0.55, $0.66
Buyers managed to keep ADA above the key support at $0.45, and now the indicators on shorter timeframes are giving signs that sellers may concede this fight and allow the price to move higher. Bulls will have to take the price above the $0.50 resistance to gain sufficient confidence to move higher towards $0.55.
Trading Volume: The volume remains low. The weekend saw a sharp decrease, but on Monday, buyers showed interest. It’s important for ADA to sustain this momentum going forward.
RSI: The daily RSI has remained flat at around 40 points, but on the 4-hour timeframe, it is making higher lows and highs. This is positive, but ADA requires more volume.
MACD: The daily MACD remains bullish but lacks momentum. As long as ADA stays above $0.45, then buyers have a good chance to push the price higher.
The bias for ADA is neutral.
A lot of tension has been building around ADA, particularly at this key support of $0.45. The price will likely experience a sharp increase in volatility as soon as the balance of power between bulls and bears shifts.
