ADA stuck at key support, can bulls break through?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Buyers have propped up prices at a key support level.
- Funding rates remained positive.
A recent price report on Cardano [ADA] highlighted the feasibility of the $0.3 support being a good buy level. However, bulls haven’t seized the opportunity, as prices remain stuck at key support levels.
Read Cardano’s [ADA] Price Prediction 2023-24
While bulls and bears tussled for dominance at the critical price level, Bitcoin [BTC] rallied above $29k. Further gains for the king coin could provide the needed impulse for ADA bulls.
A price breakout is looming, but which way will it go?
ADA was on a gentle uptrend before the price rejection at the $0.376 price level. This led to a sharp reversal, which took ADA to the critical $0.3 support level. Despite the pullback, bulls have been able to hold on to the support level for over a week.
A look at the ADA’s price action on the 12-hour timeframe showed a tightening of the Bollinger Bands. This suggested that a price breakout was imminent. With prices lying at a critical level, the breakout could go either way.
A bullish breakout will see ADA head toward the $0.35-$0.37 price level, with the $0.376 resistance a key hurdle to cross for more gains. On the flip side, a drop below the $0.3 support will see bears target the $0.25-$0.26 price region.
Meanwhile, the Relative Strength Index (RSI) hovered around the neutral 50, while the Chaikin Money Flow (CMF) also lingered around the zero mark. Both indicators revealed the neutrality of buyers and sellers while waiting for a clear trend to emerge from the press time price level.
Market speculators can’t pick a side
How much are 1,10,100 ADAs worth today?
Speculators in the futures market adopted a cautious approach, due to the possibility of a price breakout. The Open Interest data on the four-hour timeframe fluctuated between $110 million and $120 million, per Coinalyze.
Another jump in BTC’s price could serve as the catalyst for the bullish breakout. Traders should however remain cautious and closely track Bitcoin’s price action.