Cardano Price Analysis: ADA Downtrend Reversal Following 10% Daily Surge?

Cardano Price Analysis: ADA Downtrend Reversal Following 10% Daily Surge?

Key Support levels: $1.5

Key Resistance level: $1.9

ADA found good support on the $1.5 level, and today, bulls moved the price closer to the key resistance at $1.9. If they can sustain this momentum, then ADA has a good chance to break above it and start a new rally.

This price action is also a significant sign of strength, particularly when most of the market is in red today.

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Technical Indicators

Trading Volume: Today, the volume was good from the bulls, and that pushed prices up in a very short period. It is important that they sustain this momentum over the coming days. Otherwise, this may be a one-off.

RSI: The daily RSI is curving back up and appears ready to run. This is indicative of a potential reversal in the downtrend. Once the RSI makes a higher high, then this can be confirmed.

MACD: The MACD on the daily timeframe appears a day away from doing a bullish cross on the moving averages and histogram. If that happens, it may be the impulse needed by bulls to seriously test the $1.9 resistance level.

Chart by TradingView

Bias

The current ADA bias is neutral. To turn bullish, the MACD has to flip to the positive side, and the price action needs to send ADA above $1.9.

Short-Term Prediction for ADA Price

It appears that the bulls may be plotting an attack of the $1.9 resistance level, but until then, it’s important to remain vigilant and be cautious of some serious incoming volatility.