Cardano has shown an uptrend since it traded laterally. It is currently trading above the $0.47 resistance mark. The coin has gained 7.2% over the past week but lost 1% in the last 24hrs. Following the consolidation, the coin was able to target its immediate resistance point.
The current price can remain the same so bulls may be able to return for longer periods of time. ADA has also seen signs of relief as buyers appear to have returned to the market.
The coin may trade at $0.45 if its buying power is reduced.
The coin is still trading within an extremely tight range. However, the rise above the $0.49 price mark shows that the coin has turned a bullish trend. Cardano could surpass the $0.50 mark with consistent buying power.
Cardano Price Analysis: Four Hour Chart
After it had broken out of its consolidation phase, ADA traded at $0.51 per hour. Although $0.47 was the closest support level for altcoins, sellers could push prices up to $0.40 with a slight push. On the hourly chart, there were bullish signals.
A rising trendline indicates bullishness (yellow). Cardano can rise as a result of buyers pushing it to $0.52, and later to $0.56. For bearish thesis to be invalidated completely, the coin should trade significantly above $0.56.
Also, the volume traded in Cardano also increased, indicating buyers were actively trading on the market. A green volume bar signifies bullish price movement.
Technical Analysis
In the recent days, buying strength has shown steady upward momentum. Relative Strength Index also showed the same result, with the indicator well above half the line. This is a sign of market bullishness, as buyers are now in control.
Others technical indicators indicated that buyers were also interested in buying ADA. The price for ADA exceeded the 20-SMA level. The reading of above indicates that buyers had control over the price momentum, as they drove it forward.
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ADA’s buying momentum showed positiveness on the four hour chart. Also, the Moving Average Convergence Divergence represents price momentum as well as a trend reverse. MACD was subject to a bullish crossover, and it flashed green signals bars.
These are the buy signals for the coin. They indicate bullishness in the market. The strength of buyers has also been shown by other indicators.
Bollinger bands indicate volatility in price and are paralleled on the chart. The existence of parallel Bollinger Bands indicates that the price of an asset will remain within the same range, which further signals continued relief for the coin.
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Featured Image from UnSplash. Chart by TradingView.com
