The ADA price approaching the overhead ceiling of $1.2 undermines the multiple rejections the buyers faced earlier this week. However, the buyers would need a genuine breakout to provide closing and sustainability above the $1.2 mark to confirm a continuation of the bullish rally.
Key points:
- The ADA price has gained 3.8% in the last three days.
- The intraday trading volume in the ADA coin is $1 Billion, indicating a 16.9% loss.
Source- Tradingview
On March 23rd, the Cardano(ADA) buyers gave a massive breakout from the confluence of technical resistance, i.e., $1 psychological level, dynamic resistance trendline, and 100-day SMA. As a result, the parabolic rally marked a high of $1.25, its highest since Mid-February.
However, the sellers mounted stiff resistance at $1.2 and did not allow a daily candle closing above it. Even so, the sellers couldn’t extend the downfall below the 100-day SMA($1.12), resulting in choppy price action the whole week.
The ADA price rebounded from the 100-day SMA line, preparing to rechallenge the overhead resistance. A bullish breakout and closing above $1.2 would indicate the buyers are ready for another leg-up and could appreciate the altcoin by 24% to $1.5.
Alternatively, another failed attempt from buyers to overcome the $1.2 mark would suggest weakness to the bullish momentum and may trigger a minor pullback to the $1 mark.
Technical Indicator
The MACD indicator is nearing a bearish crossover as the gap between the MACD and signal gets thinner. However, the potential breakout from the $1.2 resistance may prevent this bearish signal.
The 50-and-100-day SMA moving sideways indicates a positive shift in traders’ sentiment. Moreover, the prior dynamic resistance 100 SMA is now providing strong support level.
- Resistance levels- $1.2, and $1.8
- Support levels-$1 and $0.78
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/cardano-price-prediction-100-day-sma-bolsters-bullish-breakout-from-1-22/