After successfully retesting the key support of $1, Cardano (ADA) appears to be preparing for a possible breakout of its current price range, should the recent bullish sentiment in the crypto continue.
Main levels of support: $1, $0.92
Key Resistance Levels: $1.1, $1.2
ADA price has been consolidating between critical support ($1) and resistance ($1.1) for over a week. Recent price action and technical indicators give hints of a possible breakout of this range. ADA rarely stays in a narrow range for too long, so the most likely solution – volatility should return soon with significant movement.
Technical indicators
Trading volume: Volume has been very low lately for ADA, indicating that a major breakout can be anticipated in the near future.
IRS: The daily RSI continues to be rather flat with no clear trend, which is in line with the current price action. However, on the lower timeframes such as the 4-hour chart, the RSI has made higher lows, this is a bullish sign.
MACD: The daily MACD remains bearish, but the histogram and moving averages continue to curve. At this rate, a bullish cross is likely in the next few days, mainly if the price breaks the key resistance.
bias
The current bias is somewhat bullish. This would be confirmed if ADA manages to break the key resistance at $1.1.
Short term prediction for ADA price
While in the coming days, ADA may continue to consolidate between key levels, a breakout is to be expected, especially if the daily MACD crosses a bullish crossover. The current low volume seems to anticipate significant movement. Therefore, expect to see momentum and volatility return to ADA.
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Cryptocurrency charts by TradingView.