Despite its recent period of quiet, Cardano (ADA) is subtly gaining the spotlight as it starts to regain upward traction. Following a phase of lateral trade and bearish influence that left the cryptocurrency static, ADA is beginning to show signs of resurgence.
The present price activity might not be dramatic, but it embodies the characteristics of a market silently gaining power step by step. This emerging momentum implies that bulls are slowly regaining their footing with renewed assurance.
While the broader crypto market continues to tread with caution, ADA’s measured pace might actually indicate strength rather than vulnerability. Instead of hastily stepping into overbought territory, the cryptocurrency is setting a solid groundwork that might back a more sustainable rally.
In a recent update, crypto analyst Gemxbt highlighted that Cardano presents a bullish configuration, with the price trending steadily above the 5, 10, and 20-hour moving averages. This arrangement of short-term moving averages usually signifies ongoing buying pressure and escalating bullish momentum in the market. It also insinuates that bulls are holding the reins in the short term, keeping Cardano on a consistent upward trajectory.
According to Gemxbt, ADA’s recent price activity isn’t merely a fleeting surge but an indication of solidifying technical underpinnings. When prices remain persistently above key moving averages, it usually denotes heightened trader confidence and a conducive environment for further upward movement.
Gemxbt also pointed out that a significant resistance level is situated around the $0.62 mark, which could pose a near-term challenge for ADA’s price progression. On the flip side, robust support has taken shape near the $0.56 level, offering a buffer against potential downturns. These levels are pivotal in determining the next directional shift, as a surge above resistance could instigate additional gains, while a decline below support might indicate short-term frailty.
The analyst further highlighted that the Moving Average Convergence Divergence (MACD) indicator is currently surpassing the signal line, indicating escalating buying interest. This crossover typically signifies the onset of a momentum switch favoring the bulls, enhancing the chances of continued price appreciation.
Should Cardano persist in its upward swing and successfully surpass the $0.68 resistance level, it could pave the way for additional gains. The subsequent key levels to monitor are at $0.81 and $0.90, where the price may face extra selling pressure. A surge above these levels would propel ADA toward even higher goals, such as $1.17 and $1.58.
However, if ADA fails to penetrate the $0.68 level and recoils, the initial support to watch would be around $0.56 to $0.52, which has historically acted as a strong base. A fall below these levels could signify a shift in market sentiment and trigger a deeper pullback.
