After successfully retesting the $1 key support, Cardano (ADA) appears to prepare a possible breakout from its current price range, if the recent crypto bullish sentiment continues.
Key Support levels: $1, $0.92
Key Resistance levels: $1.1, $1.2
ADA’s price has been consolidating between the critical support ($1) and resistance ($1.1) for over a week. The recent price action and technical indicators give hints of a possible breakout off this range. ADA rarely stays for too long inside a tight range, so the most likely solution – volatility should return soon with a significant move.
Trading Volume: Volume has been very low lately for ADA, indicating a major breakout can be anticipated in the near future.
RSI: The daily RSI continues to be rather flat without a clear trend, this is in line with the current price action. However, on the lower timeframes such as the 4-hours’ chart, the RSI has been making higher lows, this is a bullish sign.
MACD: The daily MACD remains bearish, but the histogram and moving averages continue to curve up. At this rate, a bullish crossover is likely in the coming days, mainly if the price breaks the key resistance.
The current bias is somewhat bullish. This would be confirmed if ADA managed to break the key resistance at $1.1.
While in the next few days, ADA could continue to consolidate between the key levels, a breakout should be expected, particularly if the daily MACD goes through a bullish crossover. The current low volume seems to anticipate a significant move. Therefore, expect to see momentum and volatility return to ADA.
Duo Nine is a seasoned cryptocurrency technical analyst with over five years of experience in price action trading. After buying his first Bitcoin in 2014, Duo never left the blockchain ecosystem. You will find him posting charts most of the time and hanging out on his Discord crypto community. Contact: Twitter
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