- Cardano price analysis suggests a correction before ADA can rise above $3.00
- ADA faces resistance at the $3.050 mark
- The closest support level lies at the $2.80 level
Cardano (ADA) has broken above the $3.00 mark but finds strong resistance at the $3.050 level. The Cardano price analysis shows strong bullish momentum across the mid-term charts but the short-term indicators suggest that the bulls are exhausted.
The broader cryptocurrency market observes a bullish market sentiment over the last 24 hours as most major cryptocurrencies record positive price actions across the period. Major industry players include Ripple’s XRP and Polkadot recording a 9.12 and a 7.63 percent incline respectively. Meanwhile, Bitcoin and Ethereum record a 5.38 and a 7.76 percent increase in their respective prices.
Cardano price analysis: Bulls exhausted
Across the technical indicators, the MACD is currently bullish as expressed by the dark green histogram. The indicator exhibited a bullish crossover yesterday and has only shown growing bullish momentum since then. However, the indicator may show some stagnation as the Cardano price analysis shows strong resistance at the $3.050 mark.
The EMAs are currently moving upwards supporting the bulls, however, the 12-EMA has observed a decline in its gradient in recent hours. If ADA is unable to cross past the $3.05 mark before tomorrow, the 12-EMA would converge with the 26-EMA threatening a bearish crossover.
The RSI is currently neutral but trades close to the overbought territory showing little room for further upwards movement. The indicator’s high position suggests further upwards movement would cause it to enter overbought region and issue a sell signal.
The Bollinger Bands are currently wide and show further expansion at press time, however, the stagnation above the $3.00 mark suggests consolidation for the Cardano price action. THe indicator suggests an increasing price volatility for ADA across the short term.
Technical analysis for ADA/USDT
Overall, the 4-hour Cardano price analysis issues a buy signal showing bullish momentum in the markets as 15 of the 26 major indicators suggest downwards movement for the Dogecoin price. On the other hand, only two of the indicators suggest downwards movement showing low bearish presence at the current price level. Meanwhile, the remaining nine indicators are neutral and do not support either side of the market.
The 24-hour Cardano price analysis shares this sentiment as the analysis shows 14 indicators supporting the bulls against only two indicators suggesting bearish dominance. At the same time, ten indicators are sitting on the fence at the time of writing. The shared positive sentiment between the two indicators shows strong bullish dominance over the ADA price action.
What to expect from the Cardano price analysis?
The Cardano price analysis suggests that the ADA market is in a bull rally that has just broken through the $3.00 mark. However, while the mid-term Cardano price analysis shows strong bullish dominance the short-term charts suggest bullish exhaustion suggesting a correction in trend before Cardano can continue moving upwards. As such, traders should expect a drop to the $2.80 mark before ADA returns to the $3.00 level.
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