Cardano and its ADA coin’s steady ascent in the crypto market has proven to be nothing short of remarkable, as the digital asset continues to maintain a bullish trend on higher timeframe charts.
Despite a recent 3.60% slump in prices within the past 24 hours, ADA has still managed to sustain a seven-day rally of 4%, according to CoinMarketCap at the time of writing.
Currently priced at $0.4205, the cryptocurrency’s overall upward trend has left investors wondering whether this brief dip in value is merely a momentary setback or a sign of more substantial declines to come.
Support Zone Signals Positive Outlook For ADA Despite Correction
Although ADA experienced a correction, there is a glimmer of hope for the cryptocurrency as it managed to find solid support near the $0.41 per token zone. This suggests that there are significant buyers who are willing to take the risk and invest in the token at these levels with an eye on future growth.
Looking ahead, the price movement of the crypto is largely subject to market trends, given the absence of any specific fundamental triggers. However, if the recent correction was a means to weed out the most speculative investors and latecomers, and the market resumes its upward trajectory, then ADA is poised for continued success.
Cardano Shows Strong Bullish Prospects Despite Mixed Indicators
The coin has formed a range between $0.24 to $0.42, with the mid-point at $0.33 acting as a significant support and resistance level since October 2022. In the past two weeks, the RSI rose above 70, and although the OBV experienced a slight pullback after a large upward spike, it still showed strong demand and bullish sentiment behind ADA.
Despite mixed indicators, Cardano’s ADA continues to show promising bullish prospects, with the RSI still above the neutral 50 level, and prices maintaining an upward trend.
ADA market cap at $14.5 billion on the daily chart at TradingView.com
For traders, it is important to keep an eye on the mid-point of the range at $0.33 and monitor the RSI and OBV indicators closely. While strong bullish sentiment may suggest future price increases, sudden fluctuations in market conditions can always occur.
The recent indicators suggest that intense selling pressure has not yet affected the crypto, which can be seen as a positive sign for the bulls. The development activity for ADA has continued unabated, which can reassure long-term buyers about the potential for future growth.
As with any investment, it is crucial to exercise caution and conduct thorough research before making any significant trades.
-Featured image from CoinDCX