Cardano Price Safeguards $0.600 Support, Upside Momentum Weakens
Summary:Cardano price has gained more than 13% in the last week but is currently sending mixed signals. Can it sustain the uptrend?Cardano price has extended its uptrend and reaffirmed the $0.600 support...
- Summary:
- Cardano price has gained more than 13% in the last week but is currently sending mixed signals. Can it sustain the uptrend?
Cardano price has extended its uptrend and reaffirmed the $0.600 support level as the broader crypto market continues to resurge. The ADAUSD pair traded at $0.650 at the time of writing, and was up by 1.9% on the daily chart to bring its weekly gains to 13.3%.
In addition, the coin has crossed above the Volume Weighted Moving Average ($0.632) on the daily chart. However, its Relative Strength Index (RSI) is at 47, signaling an exhaustion by the buyers. Furthermore, the 4-hour chart has been showing lower highs with candles having long wicks near $0.660 to signal rejection. A continuation of that trend will likely result in a pullback in the near term.
Cardano price also faces downward pressure from declining open interest (0I) activity. According to Coinanalyze data, the coin’s OI declined by 4.43% in the last 24 hours, indicating declining investor confidence.
Meanwhile, Cardano chain’s DeFi TVL (Total Value Locked) reduced by 4.26% in the last 24 hours, although it registered 8.44% growth in the longer weekly time frame. That adds credence to the likely prevalence of the downward momentum the near-term. The Cardano blockchain has about 2,000 projects building on it. That not only means increased utility for ADA, but also portends the likelihood of a continuous growth in the medium and long term.
Cardano Price Prediction
The momentum on Cardano price signals that the upside will likely prevail if the price action stays above $0.631. That trend could meet initial resistance at $0.666. However, a stronger momentum will go higher and could test $0.700 in extension.
On the other hand, going below $0.631 will invite the sellers to take control. If that happens, primary support will likely be at $0.607. Breaking below that level will invalidate the upside narrative. Also, an extended control by the sellers could take ADA price lower ad test the second support at $0.582.
Proposals Catalyst F14 - Cast your vote, search "Otavio" in the Voting App.
If you are you using your ADA to vote in Cardano’s Project Catalyst don’t forget to voice your vote. We would be excited if you can see, comment, share and vote for us. Tip: To find them its easiest to search for "Otavio"Vote for Us
