Bitcoin (BTC)Cardano (ADA)CryptocurrencyPrice Analysis

Cardano (ADA) Should Protect This Zone to Sustain Its Rally

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%.

Related Articles

BlockchainCryptocurrency

What is Annual Percentage Yield (APY) and How Does It Work in Crypto?

Introduction Annual Percentage Yield (APY) in crypto refers to the attention or...

EconomyPrice Analysis

ECB Policymakers Consider a Mild Rate Increase

Preliminary conversations indicate a shortage of enthusiasm for a subsequent hike of...

Crypto / Forex Broker ReviewsCryptocurrency

ArgoTrade Review – Your global trading partner?

What is ArgoTrade ArgoTrade currently offers online trading using CFDs via reliable...