Cardano: Can $0.3 level come to ADA’s rescue again?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ADA found support at the $0.3 level to stem selling pressure.
- Rising mean coin age could see bulls build on defense of key level.
Cardano [ADA] rode on the market’s bullish sentiment after a positive ruling for Ripple in the case against the US Securities Exchange Commission [SEC]. ADA had been labeled a security in a different SEC lawsuit, so Ripple’s [XRP] classification as a non-security was good news for the altcoin.
Read Cardano’s [ADA] Price Prediction 2023-24
This led ADA to post gains of 30% on 13 July. However, it failed to cross the price hurdle at the $0.3760 resistance level. This sent prices spiraling down as quickly as they rose.
As of press time, bulls had halted selling pressure at the $0.3 level and a look southward showed this level has been critical for buyers in the past.
Can bulls initiate another rally from the $0.3 level?
ADA bulls have found the $0.3035 support level to be a good safe haven for repelling bearish momentum. A look at the price chart on the 12-hour timeframe revealed that bulls had used the level as a springboard for a significant bullish rally in March.
The rally flipped ADA bullish and took it to a year-high of $0.4622. ADA’s recent move above $0.3035 on 13 July was notable as it signaled a decent rebound after prices hit a year-low of $0.2395. However, the price rejection at $0.3760 curtailed further gains and ushered in a new wave of selling pressure.
Bulls once again looked to the $0.3 level for support with notable success. The on-chart indicators also echoed the possibility of the level serving as a base for a new rebound. The Relative Strength Index (RSI) dipped to the neutral 50 but sharply reversed to highlight a new influx of buying pressure.
A positive reading of +0.09 on the Chaikin Money Flow (CMF) also showed the presence of capital inflows, despite the decline from the height of +0.26.
A significant bullish charge from this level offers good buying opportunities with take-profit levels at the $0.3760 level. Alternatively, a failure of buyers to push on could see sellers re-enter the market with a year-low of $0.2395 in sight.
Mean coin age on the rise
Data from Santiment highlighted the rising slope of the 90d mean coin age. This hinted at an accumulation of ADA in the short term. If the trend continues, bulls can expect a strong rebound from the $0.3 level.
How much are 1,10,100 ADAs worth today?
Similarly, the 30d Market Value to Realized Value (MVRV) ratio stood at 1.56%, as of the time of writing. This signaled that short-term holders were beginning to realize profits with the possibility of more profits on the horizon.
Overall, the signals look good for a bullish rally in the short term. Nonetheless, traders should keep an eye out for Bitcoin’s price action, as this could influence ADA’s price movement.