The Cardano market surged as Bitcoin’s price recovered from its drop below $30,000. Considering the crypto’s recent rise and fall on the charts, ADA remained volatile as well, especially since the coin’s price had decreased by 50% since its peak in May. The digital currency was trading at $1.16 at the time of writing, with a market capitalization of $37.57 billion.
Recent recoveries have highlighted the market’s buying pressure. Will it, however, be sustained?
12-hour chart for Cardano [ADA]
The price of ADA fell within a declining channel and broke down to $1.01 on the accompanying 12-hour chart. However, the price quickly managed to stay over the $1 mark. ADA was trading at a critical level at press time, and if buyers provide support, the price might continue to test the resistance level at $1.29, or it could drop to $1.08 and consolidate.
These two eventualities were feasible because the market’s traders were supporting the press time price level. Despite the Point of Control [Red line] maintaining high at $1.34, the Visible Range revealed a growing histogram. Furthermore, bearishness has diminished as a result of the recent price increase, which could lead to a trend reversal.
This increase in purchasing pressure was confirmed by the Relative Strength Index. When the price fell, the RSI fell into the oversold zone, but the subsequent recovery brought enough buying pressure to bring the asset back to balance. ADA was close to equilibrium at the time of writing, with the RSI going sideways at 43.
Despite this, the market’s overall bearishness was maintained. More southward market pressure emerged as a result of the sell-off prompted by the decreasing price of ADA. Although the -DI remained higher than the +DI, the recovery narrowed the distance between the two lines. Finally, the Directional Movement Index showed that there was a lot of downward pressure.
The ongoing Cardano market has reached a turning point. The recent rise in the altcoin’s worth has pushed the price higher, and it can only be sustained with the help of traders. However, given the market’s negative bias, ADA could lose support at $1.16 and decline to $1.08 before consolidating.