- Cardano price expected to breakout to the $0.4750 mark.
- The closest support level lies at $0.4250.
- ADA faces resistance in crossing above the $0.4500 mark.
Cardano price action has broken above the consolidating channel it has traded in since mid-January. The price faced strong resistance at the $0.3750 and the $0.4000 levels. However, the recent bull rally has broken above both resistances as the price climbed to the $0.4500 mark.
While Bitcoin continues to trade inside its consolidating range, Ethereum has once again risen above the $1,400 mark. On the other hand, Cardano price has broken out of its previous trend, initiating a bull rally towards the $0.5000 mark. The price currently observes a 6.14 percent increase from the day’s opening price.
The broader cryptocurrency market has observed a bullish change across the last 24 hours, with most major cryptocurrencies recording positive price movement across the period. These include Bitcoin and Ethereum that record a 6.4 percent and a 7.97 percent increase, respectively.
Across the technical indicators, the MACD is highly bullish and shows an increasing bullish momentum, as suggested by the increasing size of the histograms. The two EMAs continue ascending, with the 12-EMA significantly higher than the 26-EMA.
The RSI shows an overbought asset as the indicator breaks out of the neutral zone. Currently, the indicator is trading above 80.00, issuing a sell signal suggesting a correction. However, the signal is not very strong as the indicator remains near the 80.00 mark.
The Bollinger bands were squeezed until yesterday before the price broke above the $0.3750 mark. Since then, the indicator has expanded significantly and continues to expand. Currently, the price is trading above the upper limit of the indicator suggesting further expansion.
Overall, the four-hour technical analysis issues a buy signal of considerable strength as 17 of the 26 major technical indicators suggest a bullish price movement in the short term. On the other hand, only one indicator suggests a downwards movement while the remaining eight indicators remain neutral, indicating no support towards either side.
The 24-hour technical analysis further accentuates this sentiment, with 17 indicators favoring an upwards movement against zero indicators suggesting a bearish price action. The remaining nine indicators are neutral, and the analysis issues a strong buy signal overall.
What to expect from Cardano price?
Traders should expect Cardano price to observe resistance at the $0.4500 level. However, the supportive technical indicators and the rising trade volume suggests a bullish breakout from the level. As such, traders can expect ADA to rise to the $0.4750 mark up to the $0.5000 mark.
Conversely, if Cardano price is rejected from the resistance level, traders can expect ADA to retrace to the $0.4000 mark before finding strong support. While the price may fall back to the previous consolidating channel, it is unlikely given the market sentiment and the trade volume.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.