Cardano showed an uptrend after trading sideways, now the coin has consolidated above the $0.47 support mark. Over the past week, the coin has gained 7.2%, but in the last 24 hours, ADA has lost 1% of its market value. After consolidating, the coin took aim at the nearest resistance mark.
If the coin continues to stay at the current price level, the bulls may return to the market for a longer period of time. Buyers also seem to have returned to the market, causing ADA to show signs of relief.
If the purchasing power loses power, the coin can go up to $0.45, after which the coin can trade at $0.40.
Even now, the coin seems to be trading in a tight range, but the push above the $0.49 mark has shown itself as a sign of optimism. With constant purchasing power, Cardano could break the $0.50 price mark.
Cardano Price Analysis: 4-Hour Chart
ADA traded at $0.51 on the 4-hour chart after breaking through a phase of consolidation. The altcoin’s immediate support level was $0.47, but a small push from sellers could see the price drop to $0.40. There were bullish signals on the four-hour chart.
An ascending trend line indicates bullish sentiment (yellow). A push by buyers could help Cardano climb to $0.52 and then to $0.56. To completely refute the bearish thesis, the coin has been trading above $0.56 for quite some time.
Cardano’s trading volume also rose sharply, indicating buyer activity in the market. The volume bar was green, indicating bullish price movement.
Buying power has drawn a consistent upward movement over the past few days. The relative strength index painted the same picture, the indicator was well above the midline. This reading is associated with bullish sentiment as buyers have taken over the market.
Other technicals also indicate that buyers are taking over. ADA price was above the 20-SMA line. A higher reading means that the buyers were in control of the price momentum as they were responsible for moving it forward.
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The ADA buying momentum showed positive dynamics on the 4-hour chart. Moving average convergence-divergence also displays price momentum and trend reversal. The MACD has undergone a bullish crossover and flashed green signal bars.
These green bars are signals to buy the coin, which meant that there was a bullish mood in the market. Other indicators also showed the strength of buyers.
The Bollinger Bands indicate price volatility and they were parallel on the chart. Parallel Bollinger Bands mean that the price of the asset will fluctuate in the same price range, which further indicates the continued weakening of the coin.
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Featured image from UnSplash, chart from TradingView.com
Credit : www.newsbtc.com