The crypto markets are recovering as the major tokens have begun the monthly trade on a bullish note. These tokens closed the previous month’s trade holding the crucial resistance zone, which indicates the bulls remained active regardless of the recent bearish activity. The native token of the 3rd-gen chain, Cardano (ADA) also appears to be poised to record a bullish December as the price appears to be accumulating strength for the next price action.
The ADA price is trading within the resistance zone between $0.36 and $0.40 and is maintaining a choppy trade within this zone. The price moved below the daily EMA-10 while the RSI displayed a bearish divergence, and the volume began to decrease. So what’s next? Is this a signal of a correction?
The price was initially trading within a rising parallel channel throughout October and for the first few days of November. The volume continued to plunge, which hindered the progress of the rally and compelled the price to trade sideways. The price has broken out of the parallel channel and is accumulating gains to trigger further price action. The Bollinger bands are getting squeezed, which indicates a huge drop in volatility. However, there are chances of quick price action, but the direction of the trend flows along with the mounting pressure.
Besides, the DMI is closer to validating a bearish trend as the ADX is heading towards support and a bearish crossover is about to occur between +Di & -Di levels. The ADA price could drop to the lower bands to test the support and trigger a rebound. Hence, Cardano does appear bullish at the moment and may rise above $0.45 before the end of 2023.
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