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- The price of Cardano (ADA) has risen 1.20% over the last 24 hours.
- ADA’s price seems to be attempting to break the bearish trend that is signaled on its 4-hour chart.
- Traders may want to wait for ADA’s price to break $0.3970 and $0.4076 before going long on ADA.
Cardano is a third-generation, decentralized proof-of-stake (PoS) blockchain platform designed to be a more efficient alternative to proof-of-work (PoW) networks. Scalability, interoperability, and sustainability on PoW networks like Bitcoin are limited in terms of scale because of the high amounts of energy they use as well as the slow transaction times.
Cardano (ADA) Current Market Standing
Cardano (ADA) is ranked as the seventh biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price increase of 1.20%, taking its price up to $0.3905 at press time. The Ethereum-killer’s market cap currently stands at $13.531 billion.
Meanwhile, ADA’s 24-hour trading volume currently stands at $353.163 million. Furthermore, the price of ADA is nearer to its 24-hour high at $0.3946. The altcoin’s daily low stands at $0.3788.
Despite the 24-hour increase in ADA’s price, the altcoin’s weekly price performance remains in the red at -4.86%.
Cardano (ADA) Technical Overview
4-hour chart for ADA/USDT (Source: TradingView)
The price of ADA broke below the support level at $0.3841 over the last 24 hours and attempted to do the same with the next support level at $0.3739, but was able to bounce off of the level to reclaim a position above the aforementioned level at $0.3841 –flipping the level back into support.
In addition to rising above the $0.3841 level, the price of ADA has also risen above the 9 EMA line on its 4-hour chart. As a result, ADA’s price is resting between the 9 and 20 EMA lines on its 4-hour chart at press time.
Upon bouncing off of the support at $0.3739, a bullish trend reversal was ignited for the 3 candles that followed. Currently, there seems to be a continuation of this trend as the 9 EMA line is closing the gap that exists between itself and the longer 20 EMA line.
Should the 9 EMA line on ADA’s 4-hour chart continue to chip away at this gap, then a confirmation of the bullish trend continuing may be signaled with the 9 EMA line crossing bullishly above the 20 EMA line.
Another technical indicator on ADA’s 4-hour chart that is flagging bullish is the RSI indicator, with the RSI line having crossed above the RSI SMA line in the last 24 hours.
Traders will want to wait for ADA’s price to break above the 20 EMA line on ADA’s 4-hour chart before entering into a long position. Further confirmation would be when ADA’s price breaks above the resistance levels at $0.3970 and $0.4076.
Daily chart for ADA/USDT (Source: TradingView)
The price of ADA broke above the daily resistance level at $0.3870 on 22 February, 2023 after bouncing off of the key support level at $0.3773 on the same day. This bounce propelled ADA’s price back above the 20-day EMA line. At press time, the altcoin’s price maintains a position above the 20-day EMA line.
ADA’s price did attempt to break above the 9-day EMA line yesterday, but bears were able to stop the early-stage bullish momentum in its tracks and forced ADA’s price to close yesterday’s trading session below the 9-day EMA line.
The 9-day EMA is positioned bullishly above the 20-day EMA line. However, the gap that exists between the two lines has narrowed over the last 24-48 hours. This may be an early sign of the overall trend on ADA’s daily chart transitioning from bullish to bearish.
Traders may want to keep an eye on the daily RSI indicator for clues regarding what ADA’s price will do in the next 24-48 hours, as the daily RSI line is attempting to break above the daily RSI SMA line.
Given the early signs of the reversal of the current bearish trend on ADA’s 4-hour chart, it’s fair to say that ADA’s price may print a small gain in the next 24 hours. However, the overall trend on ADA’s daily chart is bearish at press time. As a result, traders should wait for ADA’s price to break the resistance levels at $0.3970 and $0.4076 before entering into a long position.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
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