The Cardano price has risen above the consolidation channel it has been trading in since mid-January. It then faced strong resistance at $ 0.3750 and $ 0.400. When the price climbed to 45 cents, it rose above both resistances.
While Bitcoin continued to trade within its consolidation range, Ethereum once again rose above $ 1,400. On the other hand, Cardano price broke out of its previous trend and started a bullish rally towards the $ 0.5000 level. The price is now up 6.14 percent from the opening price of the day.
The cryptocurrency market has been on an upward trend for the past 24 hours, and most major cryptocurrencies have recorded positive price movement over the period. These include Bitcoin and Ethereum, which increased 6.4 percent and 7.97 percent, respectively.
What do the technical indicators tell for Cardano?
Looking at the technical indicators, the MACD is quite bullish and shows an increasing bullish momentum as the increasing size of histograms suggests. The two EMAs continue to rise and the 12-EMA is significantly higher than the 26-EMA.
RSI symbolizes an overbought asset as the indicator leaves neutral territory. Currently the indicator is trading above the 80’s and is giving a sell signal suggesting a correction. However, this bearish signal is not very strong as the indicator remains near the 80 mark.
Bollinger bands were stuck until yesterday before the price moved above the $ 0.375 mark. Since then, the indicator has expanded significantly. Currently, the price is trading above the upper limit of the indicator, indicating that further expansion is possible for the indicator.
Overall, the four-hour technical analysis gives a very strong buy signal, as 17 of the 26 main technical indicators point to a rising price action in the short term. On the other hand, only one indicator shows a downward move, while the remaining eight indicators remain neutral and show no support for either side.
The 24-hour technical analysis further emphasizes this feeling with 17 indicators supporting the upward movement against zero indicators indicating a bearish trend. The remaining nine indicators are neutral and the analysis generally gives a strong buy signal.
Investors can expect Cardano price to find resistance at $ 0.45. However, the supporting technical indicators and increasing trade volume are showing an upward trend. Therefore, traders can expect ADA to rise to $ 0.4750 and then to $ 0.5.
If Cardano price is rejected at the resistance level, traders can wait for ADA to return to $ 0.4 before finding strong support. Although the price may revert to the previous consolidation channel, this is unlikely given the market sentiment and trading volume.