Cardano (ADA/USDT) Gearing Up for More Action Amidst Market Growing Caution
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
Cardano Long-term Analysis: Bullish
The cryptocurrency market has been witnessing bullish momentum since the halving of Bitcoin. In light of this, Cardano has been responding to this market factor and standing out as one of the top-performing altcoins.
ADA/USDT has experienced a significant upside movement from a consolidation phase, breaking several resistance levels alongside. This uptrend is supported by a staggering weekly trading volume of 1.74 billion. Recent price action around the upper Bollinger band and the placement of the Stochastic RSI suggest the pair may witness a pullback in the near term. However, with strong bullish pressure, the pair seeks to break above the $1.1000 level.
Currently, Cardano trades at $1.0042, 2.11% ahead of the previous trading session.
Technical Indicators
Major Resistance Levels: $1.1000, $1.2000, and $1.3500
Major Support Levels: $0.8825, $0.7000, and $0.4554
Cardano Technical Analysis
The analysis of Cardano against the Tether on a weekly timeframe shows the pair has been on an uptrend, with the price breaking above the upper band at $0.8825. This signals the pair is experiencing strong bullish momentum and, at the same time, indicates an overbought condition with the possibility of retracement on the horizon.
The Stochastic RSI at the bottom of the weekly chart also indicates the pair is overbought, with readings at 100 and 93.63. However, with strong upward trends and increasing volume, the pair can suspend at the overbought region for an extended period.
To this end, a break above the current $1.1000 level would signal a break above the next resistance level at $1.2000. Conversely, a pullback to the upper band may occur if too much take-profit exits at the current level. Therefore, traders need to watch these levels.
ADA/USDT Analysis: A Sustained Uptrend or a Price Dip?
On the daily timeframe, ADA/USDT has been maintaining its bullish trajectory by showing steady appreciation. Today, Cardano trades near the upper band at $1.1683, up by 1.26% with a trading volume of 118.76 million. Also supported by the recent price action above the Bollinger mid-band and rising Stochastic oscillator, this growth indicates sustained buying interest.
Traders must closely watch the $1.0700 and $1.0000 levels, as these levels are likely to determine the next phase, while ADA/USDT continues to display strong bullish momentum, and the Bollinger Band and Stochastic RSI suggest further upside potential.
You can purchase crypto coins here. Buy LBlock
