ADA Price Encounters Resistance as Bulls Remain Cautiously Optimistic

ADA Price Encounters Resistance as Bulls Remain Cautiously Optimistic

The price of ADA has entered a tight range just below a critical resistance level that has capped its gains for the past three weeks. Meanwhile, the migration of more node operators to version 9.1.0 has increased the total adoption rate to 79%. Over the past 24 hours, the price of Cardano has edged higher, possibly influenced by anticipation surrounding the highly awaited Elon Musk interview with Donald Trump.

ADA Price Faces Headwinds, but Bulls Hold Firm

ADA’s price climbed to $0.337 early Tuesday morning, with the overall cryptocurrency market cap increasing by 1.8%, potentially driven by the buzz around the Elon-Trump interview.

The Cardano community is also eagerly awaiting the upcoming Chang hard fork, as 79% of node operators have already transitioned to the new v9.1.0 version.

Despite these positive developments, technical analysis of the Cardano price chart indicates that they might not be enough to counteract the prevailing bearish pressure on the asset.

Cardano Price Struggles to Overcome Key Levels

Cardano’s technical outlook remains bearish in the short term, as the price has recently broken down from a rising wedge pattern—a sign that further downside could be on the horizon.

This breakdown is noteworthy, with the wedge’s height suggesting a potential additional decline of approximately $0.048, which would set a price target around $0.280 for ADA.

Currently, ADA is trading below both the 50-day EMA ($0.345) and the 200-day EMA ($0.378), reinforcing the bearish trend. The fact that the 50-day EMA is positioned below the 200-day EMA further underscores this negative outlook.

Resistance is expected around the 50-day and 200-day EMAs, while support levels are identified around $0.28 and $0.25, where previous consolidation occurred.

The Relative Strength Index (RSI) at 40.42 is nearing oversold territory, suggesting that while bearish momentum is strong, the asset may soon reach a level where buyers could emerge.

Additionally, the Chaikin Money Flow stands at -0.14, indicating more capital outflows from ADA than inflows, aligning with the current bearish sentiment.

Should ADA’s price manage to rise and sustain above this range, it could signal increased market strength and invalidate the current bearish thesis, potentially driving the price up to $0.376 and possibly higher to $0.42.

Bulls Place Their Bets on ADA Price Recovery

Despite the challenges, Cardano bulls remain hopeful for a price rebound. Data from Coinalyze reveals that 69% of investors are currently holding Long positions on the asset.

Further, ADA’s open interest (OI) has risen by 1.67% in the last 24 hours, indicating fresh capital inflows into Cardano. The Long/Short ratio for ADA has also increased, suggesting that investors are placing more Long bets in anticipation of a price rise.

Moreover, Cardano’s active address count has seen a 20% increase over the past 24 hours, reflecting growing investor interest.

Cardano’s price movement remains closely tied to broader market trends. If the market turns bullish, ADA may break above the key resistance level that has been holding it back, potentially reaching new monthly highs in August.