Cardano is one of the popular alts, with its market cap standing at $21.9 billion. The alternative token has explored downtrends since September last year. The rally during late March sessions could not overpower this bias, and higher timeframes maintained a bearish structure at this publication.
Nevertheless, the coming few weeks might see a rally similar to March materializing as ADA broke beyond the resistance at $0.6. Can Cardano bulls protect the demand territory at $0.57 – $0.59.
12Hr Timeframe
According to the twelve-hour chart, Cardano still exhibits a bearish bias. Nevertheless, the alt broke the pessimistic market structure when prices climbed beyond the $0.6 mark. Remember, ADA tested this area as a resistance fourteen days before the price extended its decline toward $0.45.
Upsurges within the past few days emerged on increased trading volume and took out two Supertrend lines, which held steady since early April sessions. They had displayed a sell sign for most sessions within the previous two months. Nevertheless, the surge beyond $0.6 switched them into bullishness.
The Relative Strength Index hovered near 69 and is yet to present a divergence. The alt saw massive bullish strength as the Awesome Oscillator climbed beyond the zero-line to confirm momentum shift to bullish favor.
4Hr Timeframe
According to the 4hr chart, the $0.61 and $0.488 lines stayed crucial within the previous fourteen days, as could highlight ADA’s next move. Cardano dropped to $0.445 when Bitcoin plummeted to $28.3K, but this near-term bear trap had the price on a quick reverse.
The alt conquered $0.61 to switch the market to bullish, as ADA kept the $0.5 – $0.55 range away. Remember, $0.6 has been crucial within the previous three weeks, and enthusiasts await to see whether bulls will protect this area.
Investors can use $0.6 – $0.57 to execute ting long positions. Also, $0.55 represents another level to add the longs. Meanwhile, market players would need to reduce trade sizes due to the uncertainty of market conditions and overall trends. They can set stop-loss beneath $0.488 and a risk of not more than 1%.
The 4hr Relative Strength Index and Stochastic RSI remained stratospheric, and the coming hours might witness a setback to $0.6. A sign to execute Cardano longs might be a bullish cross on the Stochastic Relative Strength Index and RSI staying beyond the 50 neutral, as long as ADA price remains beyond $0.55. Also, the on-balance volume witnessed a sharp upside move, supporting a bullish breakout.
Final Thought
Longs entered at $0.6, and $0.55 would necessitate careful supervision based on the position size. Indicators and price action reveals a potential upside to $0.7, then $0.77.
Nevertheless, conditions should line up, and BTC breaks above $32K to support bulls’ upside commitment. As BTC and ADA encountered some hurdles to the north, risks on Cardano should be below 1%.
