Connect with us
Active Currencies 14906
Market Cap $2,507,591,755,605.50
Bitcoin Share 51.27%
24h Market Cap Change $2.64

Cardano [ADA]: Bullish rally rejected at range-high, what comes next?

2min Read

Cardano [ADA] bulls briefly halted the month-long bearish swing. Can buyers register more upside, or is this a minor setback for sellers?

Cardano [ADA]: Bullish rally rejected at range-high, what comes next?

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Bulls failed to break past the $0.3760 resistance level at the first attempt.
  • ADA remained stuck in a tight price range.

Cardano’s [ADA] bearish swing came to a brief halt with bulls rallying from the $0.3505 support level. An earlier report highlighted the significant bearish sentiment around ADA and the importance of the $0.3505 support level for bulls.


Is your portfolio green? Check out the ADA Profit Calculator


Bitcoin’s [BTC] short-term push to $27k could determine ADA’s next move. With the altcoin trading in a tight range, can bulls push on for more gains, or will bears force another price breakdown?

Tug of war between bulls and bears

Source: ADA/USDT on Trading View

ADA bears and bulls have been stuck in a support and resistance match-up over the past month. ADA’s bearish swing from the $0.4850 resistance broke past the $0.4161 level before finding support at the $0.3760 level. The $0.4161 level, now acting as a resistance level, stopped the bullish rally from the $0.3760 level on 1 May.

A re-test of the $0.3760 support and the bullish order block just above it saw prices sink further. Price once again found support at the key $0.3505 level on 11 May. Bulls rallied from this level again but the $0.3760 support now flipped to resistance has proven too hard to surpass.

As of press time, the RSI hovered under the neutral 50 mark with the OBV also in decline.

Consequently, going by ADA’s recent price action and history, a re-test of the $0.3505 level will see prices sink lower. A daily candle close below this support level could spur bears to target the March low of $0.3140.

Alternatively, prices could trade higher, if bulls clear the $0.3760 resistance level and close above it. This will see buyers push for the April highs of $0.4161 or $0.4580.


How much are 1,10,100 ADAs worth today?


ADA gives mixed signals in the futures market

Source: Coinalyze

Buyers and sellers in the futures markets continued to weigh up their next moves carefully. The Open Interest (OI) data from Coinalyze showed that it remained in a perpetual decline, despite the short-term bullish rally.

However, the funding rates remained positive to hint at a steady demand for ADA.

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.