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- Cardano price skyrocketed this week.
- Buyers have recovered around 9.5% so far in the last five days.
- Amidst the recovery, the buyers successfully escaped the resistance trendline.
Cardano – The eight largest cryptocurrency is displaying a positive outlook in the charts. Thus it affects the buyers as Bitcoin and Ethereum appear neutral due to low volatility. Analysts believe that the price correction in Cardano is over and heavy money inflows could be seen ahead if the price breaks above the immediate bullish resistance.
The weekly chart provides positive conditions in the market with 9.5% price recovery in the last five days. This five-day continuous gain has recovered the losses of the last two weeks. This means that the buyers swung into action and changed the directional outlook of the traders.
Hourly price action forming a high-low. Meanwhile, the buyers successfully escaped the resistance trendline amid the recovery. In fact, the bulls have room to push Cardano price towards the next resistance on the overbought RSI indicator.
Despite the bullish momentum on the charts, the trading volume is lower than in the December trading sessions. At this point of time the participation of retail traders is visible less and only buyers are depositing crypto. According to CMC, the trading volume was recorded at $237 million.
Cardano has important support and resistance levels near the $0.24 and $0.30 levels. The buyers had defended themselves well near the support level and it remains to be seen whether the bears will pull the crypto to the next level or not. The market capitalization increased by 2.23% in the last 24 hours and was recorded at $9.39 billion at that time.
Lastly, Cardano price remained above the 20-day moving average on the daily chart. And 50 DMA seems to be the next stop for the correction phase. Meanwhile, the RSI indicator above the 50 mark represents a sustainable to bullish trend. Similarly, the MACD also reflected a bullish crossover from the negative zone.
conclusion
The 20-day moving average is acting as a support, while the bulls are soon targeting the $0.30 level. All the technical indicators are positive and Cardano price may soon head towards the next bullish hurdles. But trading volume is a factor, so buyers should increase volume for a healthy trend.
Support level – $0.24
Resistance level – $0.30 and $0.40
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
