Cardano (ADA/USDT) Gears for Potential Upside Recovery
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: Ranging
Cardano against the Tether, like any other crypto pair, has seen a lot of minor fluctuations in recent times. However, ADA/USDT has displayed notable price movements this week, hinting towards an upside movement and a change in market sentiment.
In recent times, the Cardano’s price has rebounded, showing a weekly increase of about 33.55%. To this end, expectations are leaning towards whether the pair can maintain its momentum towards the immediate resistance, as the spike comes after a prolonged consolidation.
Currently, the pair trades at $0.4462 slightly above the upper band, with over 1 billion traded volume.
Technical Indicator
Major Resistance Levels: $0.4587, $0.5000, and $0.6000
Major Support Levels: $0.3682, $0.3200, and $0.2917
Cardano Technical Analysis
Cardano, on a weekly timeframe, is trading slightly above the upper Bollinger band. This signals an overbought condition that could be followed by a potential retracement. However, for the pair to maintain the current upside trajectory, the price needs a sustained break above the $0.4447 level towards the next resistance level.
On the other hand, the Stochastic RSI suggests a recovery to the North. However, the indicator suggests the pair is close to the overbought region. The lines of the indicator read 63.69 and 58.91, respectively, indicating the pair has more room for upside trajectory before a pullback or any potential cooling-off phase.
ADA/USDT Analysis: A Continued Uptrend or Potential Retracement?
On the daily timeframe, ADA/USDT is trading around the $0.44460. This reflects a substantial gain of 9.72% above the recent trading session in the past few days.
The activities of the price above the upper band at the $0.4095 level suggest the pair is currently overbought and may be due for some minor retracement as traders may look to take profit. In the near term, the pair may experience some minor pullback before continuation of the upside movement, provided there is enough bullish strength. Contrarily, a price retracement with strong selling volume may push the price further towards the mid-band for another round of consolidation.
From the bottom of the chart, the Stochastic RSI suggests the pair may be due for a correction to the south, with the lines of the oscillator reading above the 80-mark level. At this point, traders must trade cautiously, as the market may face a short-term retracement in the near term.
You can purchase crypto coins here. Buy LBlock
