After Month-Long Rally, Here's Why $1 Is A Long Shot For Cardano Price
Summary:Despite gaining nearly 50% in the last month, recent days have seen Cardano price extend gap to $1 and the current momentum points sideways. Cardano price hit a five-day high of $0.856 on Monday, but...
Summary:
- Despite gaining nearly 50% in the last month, recent days have seen Cardano price extend gap to $1 and the current momentum points sideways.
Cardano price hit a five-day high of $0.856 on Monday, but signaled bullish consolidation as resistance persists at $0.900. The momentum on the coin shows neutral conditions, with the daily RSI at 64 at the shorter 4-hour time frame having it at 51. In addition, the Average Directional Index (ADX) is at 14, aligning with the sideways narrative. However, the coin’s trading volume rose by 25% above the levels recorded in the previous 24 hours, signaling a potential breakout.
Why Near-Term Gains By ADA Will Be Limited
The coin lost 3.6% of its value in the last week, signaling the weakening of the upside traction despite 47% monthly gains. However, its open interest contracts rose by 5.55% in the last 24 hours, which could provide support to ensure it stays above the $0.800 mark in the near-term.
However, altcoin peers like Ethereum, BNB, Solana and XRP have had a better run in recent days and that raises the prospect of ADAUSD underperformance. BNB, in particular has stolen the limelight after it rose to new all-time highs of $858 on Monday. Meanwhile, Ethereum’s strong ETF performance also gives it an edge.
Looking ahead, Cardano price could struggle for traction above $1 in the absence of a a fundamental catalyst. Rumours of Apple Pay integration have swirled recently, but that only turned out to be a third-party app, Begin Wallet which is able to support ADA payments via CardanoKit and not an Apple-supported integration. Therefore, medium and long-term growth by ADA will likely be dependent on institutional purchases, especially via spot ETF trading which is currently pending approval.
Cardano Price Prediction
Cardano price pivots at $0.813 and action above that level will favour the buyers to take control. That momentum will likely meet the first resistance at $0.843. However, an extended control by the buyers will go above that hurdle and potentially test $0.863.
See also
On the other hand, going below $0.813 will signal control by the sellers. That will likely see the first support come at $0.794. The upside narrative will be invalid below that level. Also, such momentum could push the action lower and test $773.
This article was originally published on InvestingCube.com. Republishing without permission is prohibited.
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