Crypto News- Early in the trading day, Cardano (ADA) exhibited strong bullish momentum. However, it encountered formidable resistance at the intra-day high of $0.2642. Consequently, the price retreated, eventually finding support at the $0.2546 level.
This particular level signifies a notable influx of buying interest in ADA. Should the bulls muster enough strength, there is potential to breach this barrier and drive the price upwards. As of the latest data, ADA is currently trading at $0.2559, marking a 2.34% decline from its recent peak.
ADA Sees Correction After 30-Day High, Indicators Point Towards a Potential Reversal
In the event that bearish momentum breaches the $0.2546 support level, the next critical level to monitor is approximately $0.25. Historically, this zone has proven to be a sturdy support for ADA. A dip below $0.25, especially due to increased selling pressure, could lead ADA towards the subsequent support level, approximately at $0.24.
Notably, ADA’s market capitalization and 24-hour trading volume have both seen a decline of 2.38% and 20.81%, respectively. These metrics now stand at $8,989,613,577 and $168,004,57. This drop in market activity implies a diminishing interest among investors, potentially affecting ADA’s price. Additionally, the decrease in market capitalization raises concerns regarding ADA’s overall value, which could contribute to further selling pressure.
Turning to the 4-hour ADAUSD chart, the stochastic RSI has crossed its signal line, registering a value of 2.80, indicative of oversold conditions. This pattern suggests the potential for a reversal of the ongoing downtrend and a forthcoming rebound. Should the stochastic RSI trend towards the 50 mark, it could provide added strength to the bullish momentum, offering more evidence for a potential ADAUSD rally.
However, a shift into positive territory and an upward ROC may signal a change in market sentiment, attracting more buyers and potentially triggering a spike in ADAUSD prices.
Currently, with the Relative Strength Index (RSI) at 45.19, below its signal line, the bearish trend in ADAUSD may persist in the short term. Nevertheless, if the RSI rises above its signal line and enters the overbought zone, it could suggest a potential reversal of the bearish trend, hinting at optimism ahead.
In summary, Cardano’s ADA has exhibited resilience in the face of challenges. Traders are keeping a close eye on the $0.2376 support level, with key indicators suggesting the potential for a bullish reversal.
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