ADA broke out higher, near the SMA 200 ($0.3229), after a buying action.
Cardano faced volatility but showed resilience. Technical indicators suggest short-term upward momentum.
The buying frenzy for ADA has been a sight to behold as the asset climbs above its 200-day simple moving average (SMA 200). The SMA 200 is an important technical indicator that reflects the long-term trend in the price of an asset.
In this case, ADA opened the daily trading session at an intra-day low of $0.3024 and steadily increased in value to its current state of $0.3229. This indicates that the asset is now trading near its 200-day moving average, suggesting that a long-term uptrend could be underway.
Cardano (ADA) Faces Volatility as Gains Retreat Amid Positive XRP Verdicts
Cardano (ADA), the prominent open-source blockchain platform, encountered a significant setback in its value during the 2022 crypto winter, erasing nearly 70% of its gains. The decline followed a robust rally triggered by favorable court decisions in the XRP case against the U.S. Securities and Exchange Commission (SEC).
These positive verdicts sent optimism through the crypto market, propelling Cardano to a soaring increase of over 21.55% in the past 30 days. During this surge, traders and investors exhibited restored confidence in digital currencies, and ADA emerged as one of the prime beneficiaries.
The tide swiftly turned, correcting Cardano’s value, underscoring the volatile nature of the cryptocurrency market. Despite this downturn, the overall sentiment in the crypto markets remained relatively stable. Investors continued to hold optimism regarding the potential approval of Bitcoin exchange-traded funds (ETFs).
In line with this, the SEC recently greenlit a second spot Bitcoin ETF application for review from asset manager Valkyrie, following a similar approval granted to BlackRock’s application the previous week. These developments also added to the positive outlook among investors and ADA holders.ADA price has started to rally following today’s mini-rally, and it remains to be seen if the asset will continue its positive momentum.
ADA Technical Analysis on a Daily Chart: ADA Corrects After Hitting a High of $0.3684
Cardano is trading at $0.3162, up by over 8% after a bullish continuation of last week’s trend. The asset broke out of its recent range during the trading session and hit a new high of $0.3684 before correcting lower. ADA is on an uptrend after it bounced off its SMA 200 ($0.3229) support level.
The MACD indicator is currently in a bullish crossover as the signal line crosses over the histogram. This is a sign of increasing buying pressure and indicates that the upward trend could continue in the short term.
The RSI indicator is rising steadily and is hovering above 50, indicating the altcoin has more room for growth.
Meanwhile, the Bollinger bands have started bulging outwards, suggesting that volatility will continue increasing, with key resistance levels to watch at $0.35 and $0.40. The lower band lies near the Fibonacci 23.60% retracement of the last leg, suggesting the current trend could extend further in the coming days, while the upper band at the same time warns of a potential pullback.
ADA/USD 4-hour Chart Analysis: Bulls Stumble to Keep Prices Afloat
On the 4-hour chart, the bulls have been holding onto the recent gains, with the key support of $0.3050. The selling pressure is heavy, but the buyers remain unyielding and have maintained prices above this support level.
The technical indicators signal a bullish market sentiment, with the MACD providing a bullish crossover and the RSI pointing higher. The bulls may find some resistance at $0.3240, but if they manage to breach this level, we could see an extension of this rally towards the Fibonacci 61.80% retracement at $0.3488.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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