Aaryamann Shrivastava
FXStreet
- Cardano price is trading at $0.399, maintaining its macro uptrend that began mid-January.
- The bullish outcome of this situation is expected to draw more traders towards ADA and push the price up.
- In the unfortunate event of bearishness taking precedence on the asset, the altcoin could fall to $0.325 and invalidate the bullish thesis.
Cardano price has been treading steadily upward, recovering the losses it endured over the last few months. The uptrend, while on the macro scale, seems to be intact, with ADA potentially heading toward $0.45, the short terms conditions might differ.
Cardano price still got it
Cardano price, despite the broader market receding into bearishness, managed to paint green, rising by nearly 6% in the span of three days. Trading at the price of $0.4 at the time of writing, ADA seems to be inching closer to clearing its next major hurdle.
For Cardano price to keep up with the ongoing rally, buyers would have to pump the price up by maintaining their conviction. This would allow ADA to breach the immediate resistance at $0.402 and prepare to do the same with the critical resistance at $0.428.
Once $0.428 is flipped into a support floor, the altcoin will be on its way to recover 4-month old losses.
Although the Moving Average Convergence Divergence (MACD) indicator is pointing in a slightly different, possibly bearish direction. The signal line (red) and the MACD line are currently in line with each other.
ADA/USD 1-day chart
However, if the signal line takes over the MACD line to establish a bearish crossover, ADA could end up in trouble.
Cardano price would lose its immediate support to fall to $0.344. The altcoin would have an opportunity to bounce off this level and reinitiate recovery.
However, failing to keep above it could result in the cryptocurrency slipping to the critical support at $0.325. A daily candlestick close below this level would invalidate the bullish thesis, pushing the price to $0.308.
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