ADA Price Analysis – Cardano Consolidates, Poised for a Bull Run?
Cardano hit an ATH of $1.5 after the announcement of inclusion in the Coinbase pro segment. But plummeted at least 30%, as it could not hold the highs. It has entered a consolidation phase of around $1.1. ADA experienced resistance by selling pressure and concentration of Bitcoin’s rise. Cardano outperformed Bitcoin once in the first week of March. However, it lost its momentum and slipped into a descending trend until March 17, 2021.
On March 17, ADA Price broke out of the descending triangle. It faced strong resistance at $1.2 and support at $1.0. Bulls finally won the battle, breaking the crucial resistance levels and reaching the $1.29 level. While penning this article down, ADA was consolidating and was looking healthy at $1.12 levels, down 5% from the last trading session.
The chart indicates a Flat top ascending pennon pattern or ascending triangle pattern indicating bullish momentum. What is more interesting is that the rise in the prices of ADA is observed at a time when Bitcoin is consolidating below $54,000 after hitting an ATH levels of $61,000.
The volumes of trades of ADA exceeded $4.8 Billion worth of transactions in the last 24 hours.
ADA Boasts a market capitalization of $35,928,482,464 and is ranked Fifth by CoinMarketCap among all cryptocurrencies. Fibo Retracement levels show the chart reporting and holding between 0.5 and 0.61 level. A solid buying sentiment was also observed as represented by the MACD indicator.
RSI(14) levels were at around 40, Oversold zone, showing significant room for volume dominated momentum. The moving average(20 & 50) indicates an Intraday perspective. But when looking at daily charts, the indicators show a Bearish trend.
There is a strong possibility that the price will hold above $1.1, forming a consolidation triangle and may blast to $1.5. It can also cross the $1.5 levels and finally hit $1.8 if the trend reversal happens.
On the contrary, if there is an acute reversal and price breaks down from the trendline, it could lead the currency to take support at $1 and $0.9. Next two trading sessions will decide the direction of the momentum of the ADA prices. But the previous ATH will act as a resistance level. Hence it is an important level to watch.
Support Levels: $1.1, $1.0 and $0.9.
Resistance Levels: $1.3 and $1.45.