Ever since the past bullish push, the Cardano price appears to have gained significant bullish momentum as the buying volume has surged to a maximum extent. However, after forming a strong base, Cardano is currently facing minor bearish action as the price stands rejected from $0.46 to the current level of around $0.44.
The ADA price is currently trading above $0.42, which also collides with the 100 SMA levels in the short term, forming a bullish pattern with short-term resistance at $0.45 to clear. The latest price surge had raised the levels beyond $0.46, while the recent pullback may compel the price to test the same resistance zone, which has now transformed into a strong support zone.
The price was trading within a large, symmetric triangle before reaching the apex, then underwent a breakout and surged beyond the interim resistance zone between $0.41 and $0.42. The bearish volume is slowly accumulating but does not appear to be sufficient to halt the mounting bullish momentum. Hence, after a minor pullback, the ADA price is expected to begin with fresh price action very soon.
The ADX, or the Average Directional Index which determines the strength of the rally, is soaring high despite the bearish actions. Hence the token continues to remain under the acute bullish influence and is therefore believed to withstand the prevailing bearish actions. Thus, with an interim bullish push, the price may initially regain the levels above $0.45, which may further extend up to $0.48 with minor bearish interference.
However, the bulls are required to maintain their strength at $0.46, which may validate a breakout from the bearish influence, or else a drop may drag the ADA price close to $0.4 again.
Source: https://coinpedia.org/price-analysis/cardano-preparing-for-a-fresh-rally-will-ada-price-make-to-0-5/