In the early hours today Cardano crawled a little higher reaching $1.19 after it slipped around $0.75. At the time of writing, Cardano has slightly gained trading at $1.13 with a plunge of 1.18%.
Cardano Price Action
Today’s rebound by Cardano marked 7.5% gain in the early hours today. Nevertheless , it started draining in the second half that even priced around $0.75 before regaining $1 position.
The chart below shows the upper trendline which served as a selloff zone and is now being tested again as resistance.
In a weekly chart ADA is now signaling potential pullback move as daily RSI is reading above 70. Particularly Cardano token, ADA’s rebound is testing 20-week (near $1.21) and 50-week (near $1.31) exponential moving averages (EMA) as resistances. These were the reasons that fueled ADA price in January 2022.
As per Weiss Rating analyst, Alex Benfield, ADA should regain $1.20 support level which will keep the bulls intact. As per his prediction if Cardano manages to regain this support level, then we could see higer medium-term price rally.
ADA Bulls Are Fundamentally Strong !
Crypto wallet MinePlex co-founder, Alexander Mamasidikov is of the opinion that despite its overbought risk, Cardano is temporarily bullish. He believes that ADA’s ongoing growth will fundamentally help price to reach more highs because token started surging after ADA was included in Grayscale Investment’s new altcoin fund also known as Smart Contract Platform ex Ethereum fund (GSCPxE).
Mamasidikov stated that “The growth is proof of how impressed investors are with respect to the revolutionary role of the Cardano blockchain in the fast-growing smart contract-powered evolution of Web3.0.” His extract also stated
“Drawing from ADA’s growth trajectory, the $1 price level remains the crucial support level while the coin’s resistance is pegged at $1.5 in the short to medium term.”
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Source: https://coinpedia.org/altcoin/ada-bulls-fail-to-break-crucial-resistance-will-cardano-price-drop-below-1/