ADA Bulls Awaken: Strong Trend Emerges Amid Market Volatility
In the previous 24 hours, the Cardano (ADA) market has seen bearish momentum, with bullish attempts to reclaim market share being thwarted. Nevertheless, after the ADA market found support at an intra-day low of $0.3044, bulls awoke and pushed the price to a high of $0.321. Cardano’s price was at $0.3213 as of press time, a 4.10% increase from the intra-day low, demonstrating a strong bullish trend in the market.
If the bull rally continues, a break over the $0.321 resistance level may be apparent, and the next resistance levels may be around $0.35 and $0.38, attracting more buyers and pushing the price higher. But, if bullish power fades, the price may fall and retest the support levels at $0.28 and $0.25, triggering some selling pressure from investors trying to grab profits.
The market cap increased by 4.06% during the decline to $11,139,625,285. The 24-hour trading volume decreased by 31.01% to $311,576,608, indicating that investors remain interested in the asset but may wait for a better entry point before purchasing again.
Furthermore, the drop in trading volume suggests that the market may be experiencing a temporary lack of liquidity, which might contribute to higher volatility and probable price swings in the short term.
ADA/USD 1-day price chart (source: CoinMarketCap)
On the ADA 3-hour price chart, the stochastic RSI advances northward with a value of 68.09, indicating that the positive momentum may continue in the near term. However, traders should watch the resistance level around $1.35 as a possible location for profit-taking and price reversal.
However, traders should watch the resistance level around $1.35 as a possible location for profit-taking and price reversal. This movement is probable if the stochastic RSI swings into the overbought range. This market condition, over “70,” often suggests a potential trend reversal and a change in market sentiment from bullish to negative.
With a score of -12.10, the TRIX indicator indicates that bullish momentum is gathering strength, and traders may explore buying opportunities in the market. This action allows for future price hikes and may signify a change in market mood toward a more optimistic view.
But, if the TRIX reverses and heads south, investors may need to review their holdings and consider taking gains or applying strategies for risk management to safeguard their portfolios from possible losses.
ADA/USD price chart (source: TradingView)
Since the Bull Bear Power (BBP) is pointing north with a rating of 0.015, the bullish trend in ADA may continue, signaling strong purchasing activity in the market. This anticipation is because growing BBP signals that purchasing pressure is increasing, which means that traders are prepared to pay more outstanding prices for ADA, resulting in a market uptrend.
This move boosts traders’ confidence and signals a chance for profit-taking, as well as attracting new investors trying to capitalize on the rising trend.
The Rate of Change has lately moved into the positive range, indicating a “buy” signal, which might attract more optimistic buyers and propel the price further. With a ROC reading of 3.87, this positive trend in the ADA market will continue soon, opening the door for bulls to break through the $0.3218 barrier and set a new high.
ADA/USD chart (source: Trading View)
Cardano’s bullish momentum may continue, but traders should watch for resistance at $0.35 and $1.35.
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