Can the current 4% recovery maintain momentum, or is it likely to stall soon? The day opened on a bullish note, with the digital assets charted in the green. The largest assets, like Bitcoin (BTC) and Ethereum (ETH), are attempting to turn their broader momentum bullish. Among the altcoin pack, Cardano (ADA) has steadily jumped by over 9.68%.
ADA chose to trade at the lowest level, at $0.2683 in the morning hours. After the bullish wave across the asset’s market, the price has soared to a high of $0.3124. To confirm the uptrend, it has broken a few significant resistances between $0.2690 and $0.3117. With the bulls staying longer, the price action would turn stronger.
Currently, Cardano trades within the $0.2936 range, with its market cap at $10.59 billion. In addition, the daily trading volume has exploded by over 180%, reaching the $1.15 billion mark. The Coinglass data has shown that the market has witnessed a $2.39 million worth of ADA liquidation over the last 24 hours.
The 4-hour candlestick pattern of Cardano holds the power of the bulls. If the golden cross emerges, it may push the price up to the $0.30 resistance. A continued gain could propel the asset to challenge higher price targets. With Cardano bears appearing, the price could likely retrace to the support at around $0.28. Further breakdown would open the door for further losses, and the death cross might show up, triggering a revisit to the former lows.
When the Moving Average Convergence Divergence (MACD) line crosses above the signal line, it shows a bullish positioning. The short-term price strength is improving compared to the recent trend. If Cardano holds to the momentum, the upside move could continue.
Moreover, the Chaikin Money Flow (CMF) indicator settled at -0.02 reflects selling pressure in the ADA market, but the strength is very weak. Also, the money outflow is slightly higher than the inflow, hinting at a near-balanced market with a mild bearish bias.
Cardano’s Bull Bear Power (BBP) value, found at 0.0303, displays mild bullish pressure. If it continues to rise, it may strengthen the bulls. In case of a move happening below zero, it weakens the buying pressure and potentially shifts toward neutrality or bearishness.
The daily Relative Strength Index (RSI) of ADA is at 64.7, which reads as strongly bullish, with the buyers maintaining a clear control of the market. Notably, it may approach the overbought zone at around 70, as there is enough room for further moves on the upside.
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