Due to an improvement in the overall cryptocurrency market attitude over the last three days, Cardano’s main token, ADA, has seen a large bullish comeback in recent days. Although it is present in the fear zone, as opposed to the acute terror experienced the previous week, it is still dangerous. After contacting its trend line support level, ADA needed to recover quickly, and the sentiment adjustment came at the right time.
Since the beginning of the year, ADA has been trading within a non-uniform pattern supported by support and resistance. The coin tested its support line at 0.93 dollars on Monday before showing some gains on the day after that. At the moment of writing, ADA was trading at $0.97, indicating that the bulls had retained their strength and were holding the line.
In April, the bearish retracement in ADA’s price began after the stock’s surge in March revisited support at $1.24. Its relative strength index (RSI) has moved closer to the neutral zone, and its OBV has increased in the last three days. ADA’s Awesome Oscillator went well above the zero line during yesterday’s trading session, indicating the shift in the trend in favour of the bulls, as previously reported.
The financing rates for ADA’s Binance and dYdX exchanges have also increased considerably. This indicates that the rates at which brokers can use the company’s derivatives have improved to keep pace with the rise, representing the growing confidence in the marketplace.
The cryptocurrency had a significant increase in its “age consumed” measure, indicating that many ADA changed “hands” or direction after being dormant for an extended period. Increasing exchange outflows during the past three days are likely to blame for this development.
Is ADA Likely For A New Big Pump?
The latest support from ADA is an indication that the company is moving closer to obtaining a greater price floor. Meanwhile, the current jump in the age utilized measure could indicate significant accumulation following the recent lows in the metric. When taken together with the price turnaround, all of these developments point to a possibly strong positive performance in the future.
Because of the non-uniform pattern, the upcoming resistance retest will be noticeably higher than the former one. This is because the pattern creates greater differences over time. Because market conditions are vulnerable to unforeseen fluctuations, caution is advised. It is still conceivable for a surprising bearish move to occur, so investors should avoid putting all of their goods in one basket.
What’s Next For Cardano?
Since September 2021, the price of Cardano has been trending downward. Several attempts to recuperate were unsuccessful till March of this year. The significant reduction in the price of Ethereum gas over January and February was a contributing factor to the underperformance.
Cardano’s price has plummeted significantly after the spike in March. On the other hand, Cardano is continuing to develop the ecosystem to achieve long-term success, as evidenced by the recent agreement with Iceaddis. Cardano also works to improve the speed with which transactions are completed.
In light of the current lack of clarity surrounding Liquidity, it is quite likely that the Cardano price will stay erratic for the foreseeable future. Things may improve in May.