ADA price shows a lot of potential despite great resistance

Cardano is currently trading at $0.49 and has risen almost 19 percent in the last few days. This increase occurred exactly from a support area (upper green mark). There is currently slight resistance at the 200 EMA. The area between $0.50 and $0.51 represents a strong resistance area (lower red line). A breakout above this level could lead to a significant increase, as there are two major “imbalances” (red marks) above this level Charts are available.

According to the Volume Range Profile (VRVP), very high volume was traded at around $0.61, the next resistance area (middle red line), making this area a significant resistance as well.

Below the current level, the next major support area is between $0.35 and $0.40 (lower green mark). However, a decline to this level currently seems unlikely.

Over the past few days, Cardano has seen a significant increase in large investor (whale) activity, indicating that major players are adding to their positions and preparing for larger moves.

Bitcoin’s sharp rise in recent days has also benefited altcoins, which is a positive development for Cardano.

Cardano: Indicators show bullish trend

Since the last cross of the signal line with the average line (circled zone), the MACD (Moving Average Convergence/Divergence) has continued to move upwards and is about to return to positive territory.

However, volume remains low, indicating waning interest in Cardano. This offers traders the opportunity to build long-term positions or increase their HODL portfolios.

The Relative Strength Index (RSI) is at 55 points and is therefore in slightly overbought territory, but this can be viewed as neutral. As long as the RSI does not reach 70 points, there is still upside potential for Cardano.

About the author

Bastian Keller (Bitbull) has been operating independently in the Forex market since 2015 and has been a full-time trader in the crypto market since 2018. He actively shares this expertise on various social media platforms, especially on his YouTube channel “Bitbull Trading“, with more than 60,000 subscribers.