Cardano price struggles at 100 SMA, breakout needs more accumulation

• Cardano price surpassed the December high but failed to sustain.

• The buyers are struggling near the 100 day moving average.
• The trading volume decreased by 39% to $333.5 million in the last 24 hours.

Cardano (ADA) price bounced back after December’s decline. Altcoins are performing well this week amid a bullish cryptocurrency market. Many investors and whales have built long positions in the market.

Cardano bulls broke above the downtrend line a few days ago with massive trading volumes, indicating that buyers are enjoying the bullish trend so far. Cardano (ADA) will enter the green market in 2023. As 2023 began, the asset’s rally saw significant price accumulation, as did other indicators.

According to the daily price action, buyers are looking aggressively for more upward trends. Speculators have only seen three bullish candles in the last ten days. It makes it appear that ADA holders decided to dump and over $500,000 in ADA tokens between November and December 2022, only to have a significant portion of the dropped coins returned.

At the time of writing, Cardano price is down 2.58% in the intraday trading session against the USDT pair, while the price is trading at $0.314. Despite the correction phase, buyers have recovered around 27.7% so far this week. Buyers must maintain a monthly price close above the previous month’s high.

Meanwhile, the market capitalization at that time was recorded at $10.86 billion. Today, buyers weary near the resistance level resulted in a reported 39% drop in trading volume over the past 24-hours to a reported $333.5 million. Following the trend, the next resistance level is seen at the $0.44 mark. On the other hand, the bulls are ready to deposit Cardano price at the $0.24 support level.

On the daily price chart, the buyers are struggling near the 100-day moving average, above this resistance the 200 SMA will be the next hurdle for the buyers. Specifically, the oversold RSI peak has started a downward trend, suggesting slight downside in ADA.

Conclusion

Cardano price (ADA) is consolidating for the next bullish rally at the 100-day EMA. But the oversold RSI spreads a bit of negativity in the live market.

Support level – $0.30 and $0.24

Resistance level – $0.40 and $0.60

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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