Cardano: Can ADA establish a clear price trend soon?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ADA maintained its sideways structure with buyers and sellers engaged in a tussle for dominance.
- Market speculators were hesitant to commit to new positions in the meantime.
The crypto market celebrated some much-needed bullish momentum with Bitcoin [BTC] rising above $27k. However, it has been a different story for Cardano [ADA]. The altcoin has struggled to establish a clear direction with bulls and bears tussling between a compact price range.
Read Cardano’s [ADA] Price Prediction 2023-24
With on-chart indicators also presenting mixed signals, it has kept ADA’s price movement in a sideways structure. Can a clear price direction emerge in the coming days?
Which way will ADA swing?
ADA’s rebound from the $0.23 support level was heralded as the start of a sustained bullish reversal. However, the active presence of sellers halted the buying pressure.
Between 18 August and 30 August, ADA has swung between quick price rises and dips on the daily timeframe. An 8% rise between 18-20 August was quickly followed by a similar drop between 21-22 August.
This has prevented any significant gains for either buyers or sellers. A look at the on-chart indicators revealed a slight leaning toward bulls getting the upper hand soon.
The Moving Average Convergence Divergence (MACD) posted a bullish crossover while the Chaikin Money Flow (CMF) remained positive with a reading of +0.09. This led to the Relative Strength Index (RSI) moving toward the neutral 50 but it dipped again, due to the recent bearish price action.
If bulls gain the advantage, buyers can push for the $0.3 resistance with the goal of reclaiming the level. On the other hand, bears could force prices lower, especially if Bitcoin doesn’t hold onto its recent gains.
Speculators remained undecided
Data from Coinalyze revealed the hesitancy in the futures market. While the Open Interest dropped with price which is usually a bearish sign, the Funding Rate remained positive.
How much are 1,10,100 ADA worth today?
Along with the spot CVD rising, it showed an underlying demand for ADA. This could play out in the coming days as a significant bullish rally, especially because bulls have rallied from this level in January and June.