/Cardano Has To Trade Above This Level To Breach The $0.40 Mark

Cardano Has To Trade Above This Level To Breach The $0.40 Mark

Cardano price has been gaining over the past couple of days. Over the last 24 hours, ADA rose about 0.3%. The coin has traded laterally in the past few sessions but maintained its bullish streak. In the last week, Cardano appreciated by close to 15%.

The technical outlook of the ADA depicts that the bulls have been prevailing over the market. Buying pressure has also noted a considerable rise on the chart. Demand and accumulation have spiked as ADA broke past its stiff resistance mark.

The price of the altcoin stands at a crucial mark because a fall from the present price level will cause the bulls to lose strength again, and ADA has to trade above its immediate line of support for it to target the next resistance level.

This recovery cycle will only continue if ADA manages to keep trading between $0.34 and $0.38, respectively. Demand for the altcoin has to continue appreciating, if not, ADA might witness another pullback in the immediate trading sessions. The market capitalization of ADA has recovered, indicating an increase in buying strength.

Cardano Price Analysis: One-Day Chart

Cardano was priced at $0.37 on the one-day chart | Source: ADAUSD on TradingView

ADA was trading at $0.37 at the time of writing. Bulls have been active ever since ADA crossed above the $0.35 mark, which acted as a rigid resistance mark in the past couple of weeks. The $0.35 support level has acted as a propelling point for the ADA price.

For the altcoin to move above the immediate resistance mark, demand for the altcoin has to rise consistently. Overhead resistance stood at $0.38. Breaching $0.38 will push ADA to trade close to $0.40.

For Cardano to maintain its bullish momentum, the price has to move between the range of $0.34 and $0.38, respectively. The amount of Cardano traded in the last session was green, indicating positive buying pressure.

Technical Analysis

Cardano displayed a rise in buying strength on the one-day chart | Source: ADAUSD on TradingView

ADA demand has registered recovery over the past few weeks. After touching the oversold zone in March, the altcoin had been moving up in regard to demand too. The Relative Strength Index noted an uptick and touched the 60-mark.

This indicated that buyers had taken control of the price. In consonance, the price moved above the 20-Simple Moving Average (SMA) line.

This meant that buyers were driving the price momentum in the market. With some push from the buyers, ADA will move above the 50-SMA line, which is a sign of increased bullishness.

Cardano depicted buy signals on the one-day chart | Source: ADAUSD on TradingView

Other technical indicators have sided with the bulls. The Moving Average Convergence Divergence suggests price momentum and trend reversal on the chart. The indicator formed green histograms tied to buy signals on the chart.

The Directional Movement Index represents the price direction of the altcoin. DMI was positive as the +DI line (blue) was above the -DI line (orange). The Average Directional Index noted an uptick as it crossed the 20-mark, depicting strength in the price trend.

Featured Image From UnSplash, Charts From TradingView.com

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