Is ADA Poised For a Pullback Toward $1?

The Cardano coin (ADA) price has glimpsed a trend reversal and has crossed the key moving averages due to the buying momentum in the past few sessions. Following the positive market sentiments, the ADA coin replicated a rounding shape of recovery and recovered over 40% gains in the last 15 trading sessions.

At press time, the Cardano coin (ADA) price was trading at $0.7374 with an intraday gain of 0.13%, indicating neutrality on the charts. It has a monthly return ratio of 38.95% and 134.04% on a monthly basis. The pair of ADA/BTC is at 0.0000106 BTC, and the market cap is $27.01 Billion. Analysts are bullish and suggest the ADA coin price will deliver a bullish rally and may catch the $1 mark soon.

Cardano Price Hovers Near $0.7300 With Drop in Volume

This week, the ADA coin signified a consolidation in the price movement and witnessed a steep decline in the trading volume, revealing low investor interest. The trading volume saw a 250% drop in the last three sessions. However, the intraday volume fell by 35% to $561.37 Million.

As per the data, the derivative segment signifies a decline in the open interest of over 8% to $491.90 Million, representing long unwinding activity throughout the week with a decrease in volume.

ADA Price Volatility Remains Lower, Sentiments Looks Positive 

With the sideways moves in the coin price throughout the week, the price volatility revealed a steep decline and dropped by 550% to -0.878 in the last three sessions. However, the total weighted sentiment indicates a rise and jumped from the bottom zone to -0.13 but remained neutral for the past weeks amidst the positive market sentiments.

Development Activity and Active Addresses Overview

The Cardano coin witnessed a constant development activity and it stays near 415, a change of 0.87% on a monthly basis. However, the active addresses activity noted an increase of over 15% to 424 in the last month.

Cardano Witnessed A Double Bottom Formation On Weekly Charts

The weekly charts of the coin signify a double bottom formation, and a breakout above the neckline of $0.7000 was witnessed in recent sessions. Additionally, the coin has surpassed the key moving averages reflecting bullishness on the charts. Furthermore, the coin has gained strength and is on the way to achieving the blue skyline of the $1 mark.

The Relative Strength Index (RSI) curve stays in the overbought zone, forming a positive divergence on the charts. Similarly, the MACD indicator signifies a convergence of the MA line with the signal line, depicting a neutral outlook for the upcoming sessions.

Summary

The Cardano coin (ADA) price signifies a recovery from the demand zone of $0.2500 and has been rising for the past weeks. The trend is optimistic, and buyers will soon lead the coin toward the round mark of $1.

Technical Levels

Support Levels: $0.7200 and $0.7000

Resistance Levels: $0.7500 and $0.7800

Disclaimer

The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. 

Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.