Cardanos Tight Consolidation: The Key to Its Price Surge?

Cardanos Tight Consolidation: The Key to Its Price Surge?


The Cardano price struggles to break above $0.38 with a bearish outlook and low demand, but potential for a substantial rally if it surpasses its overhead resistance, according to technical analysis.

The Cardano (ADA) price has consistently remained below the $0.38 zone during the previous two weeks, indicating a strong presence of sellers in the market. Regardless of attempts by buyers to regain strength in the previous 30 days, their efforts have been feeble, unable to overcome the bearish sentiment.

This persistent bearish price action has resulted in a notable breach of the critical demand and support zone betwixt $0.37 and $0.38.Over the previous day, ADA has made a slight upward movement on its chart, but the progress has been limited.

Similarly, on the weekly chart, ADA has not shown whole lot of advancement. The technical outlook for ADA reflects bearish pressure and a lack of buying strength.

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Demand and accumulation remain low as a consequence. Numerous crypto altcoins have indicated minor price increases, with Bitcoin (BTC) returning to the $27,000 price. ADA must maintain trading over its immediate support line to break out of its current narrow trading range.

If ADA surpasses its overhead resistance, the crypto altcoin could potentially experience a substantial rally in the next trading sessions. The decrease in ADA’s market cap suggests an boost in sellers outweighing buyers in the market.

Cardano (ADA) Price Analysis: One-Day Chart

At the time of publication, the price of ADA was $0.37. The crypto altcoin is as of now experiencing tight price movement during a highly constricted range. In addition, ADA is approaching a critical level of support at $0.36.

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On the upside, there is an overhead resistance at $0.38.  A successful breakthrough over this level could drive ADA’s price toward $0.40.

Nonetheless, if the price fails to maintain its current level, it  can potentially fall below $0.36. This would lead to a trading range near $0.34. The past few session showed a decrease in the amount of ADA traded, indicating a slow buying strength.

Technical Analysis

Cardano

Throughout these 30 days, ADA has struggled to generate substantial buying strength owing to low demand. The Relative Strength Index (RSI) as of now sits below the midpoint, signaling that selling pressure has prevailed in the market.

Furthermore, the crypto altcoin price has recently dropped below the 20-Simple Moving Average (20-SMA) line, indicating that sellers have been driving the price momentum. For ADA to experience a breakout, the price would must effort to boost over the 20-SMA line.

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Cardano

Although while other technical indicators may not signal ADA bullishness, the one-day chart outlines some buy indicates. The Moving Average Divergence Intersection (MACD) has shown green histograms, indicating a positive price action and momentum.

Nonetheless, the Parabolic SAR is is still to reflect this positive price action, as the dotted lines remain positioned over the price candlesticks.

Source

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