Cardano Poised for a Potential Rebound—But Will ADA Price Sustain Above $1.2 This Time?
The post Cardano Poised for a Potential Rebound—But Will ADA Price Sustain Above $1.2 This Time? appeared first on Coinpedia Fintech News
Cardano is among the tokens that has lost the user’s attention offlet as the price continues to trade within a predetermined range. Meanwhile, it has turned out to be a potential candidate for a spot ETF. Regardless of the sluggish price action, Cardano activity has increased significantly, with the number of daily active addresses surpassing 50,000. Moreover, whales recently flooded into the network, buying more than 100 million ADA tokens within a couple of days.
The ADA price has just risen over $1 as the market dynamics have slightly shifted in favour of the bulls. As the Bitcoin price sustains above $105K, other altcoins like Cardano have gained momentum as it rise above the crucial resistance. However, the price has been constantly failing to surpass $1, which may raise some concerns over the next price action. Meanwhile, the price has reached the edge of a consolidation, hinting that a potential breakout could be on the horizon.
As seen in the above chart, the ADA has reached the apex of the decisive symmetrical triangle as it tests the support, which is the crucial phase of the rally. As the price has reached support, a rebound is very essential to maintain the bullish momentum. Besides, the volume is also facing extreme squeeze, which flashes massive bullish signals for the crypto. Meanwhile, the technicals that have reached the local lows are about to trigger a rebound.
The Chaikin money flow, which is used to measure the money flow over the platform, has severely dropped below 0, hinting at a massive weakness within the market. However, the levels have displayed a bullish divergence, which suggests a slight rise in the strength. Besides, the RSI trades around the average range, indicating the bulls are waiting for the right time to enter. Therefore, the Cardano price is trading within a crucial phase and hence a daily close above $1.020 could trigger a fresh bullish move to $1.01.
However, breaching beyond the decisive triangle may only pave the way for the ADA price to rise above $1.2, which could break above the bearish range and achieve fresh highs.
