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Cardano [ADA] moves sideways, investors can look for gains at these levels



Cardano [ADA] moves sideways, investors can look for gains at these levels
Source: Unsplash

  • ADA traded in range into the weekend. 
  • Demand in the derivative markets improved, but sentiment remained negative. 

Cardano [ADA] consolidated into the weekend and oscillated between $0.3630 and $0.3676. Similarly, Bitcoin [BTC] traded between $23.23K and $29.96K as it struggled to maintain the $23K level. 

Read Cardano [ADA] Price Prediction 2023-24

Is a breach of the consolidation range likely?

Source: ADA/USDT on TradingView

ADA fell 5% after the U.S. PCE data confirmed inflation rose in January. The Ethereum rival dropped from the 50% Fib level of $0.3831 but found steady support at the 23.60% Fib level of $0.3630.

It has since oscillated within the $0.3630 – $0.3676 range, which investors could use for targets. 

Is your portfolio green? Check out the ADA Profit Calculator

Short-term sellers could target the 23.60% Fib level of $0.3630 for gains. On the other hand, near-term bulls could benefit by targeting the upper range boundary of $0.3676. A breach of the consolidation range would invalidate the neutral or sideways market structure described above. 

In the event of an upside breakout, bulls could watch out for $0.3696, 38.2%, and 50% Fib levels which are significant resistance levels. Similarly, a bearish breakout calls for short-sellers attention at $.3580 and $0.3450. 

The Relative Strength Index on the three-hour chart hovered in the lower ranges, reinforcing the bearish sentiment at the time of writing. 

ADA saw a demand spike in the derivatives market, but sentiment remained negative

Source: Santiment

According to Santiment, Funding Rate recovered after a sharp decline on Friday (24 February). It shows demand for the ADA significantly improved after Friday’s decline.

Moreover, the Mean Coin Age  (90) showed a rising slope, hence a wide-network accumulation of the token, which points to a potential bullish trend. As such, the demand could bolster bulls to inflict a recovery. 

However, the weighted sentiment was negative at the time of writing. In fact, it slid deeper into the negative territory, indicating countering metrics that could suggest a continuation of the sideway structure described above. 

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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