The past 24-hours saw increased bullish momentum in the overall crypto market as Bitcoin went past its ATH and surged past $60k. Since then BTC’s price has managed to move slightly upward. Despite the altcoin market having had a traditionally high correlation with Bitcoin, the bullishness hasn’t been uniform. Cardano’s sideways movement continues as the coin continues to trade in a narrow range.
At the time of writing, ADA was being traded at $1.091 with a market cap of $34.8 billion. In the past week’s time, the coin has endured a dip of over 3.5 percent and noted a 24-hour trading volume of over $2 billion.
Cardano 1-day chart
Source: ADA/USD, TradingView
Cardano’s price has been continued in a narrow range over the past week. There hasn’t been enough momentum in the market for its price to move in either direction. The resistance at $1.29 continues to be a formidable barrier and the past few days have seen the price failing to go past this range.
This has led to increased sideways movement and given the overall bearish nature of ADA’s long-term market, it won’t be long before ADA heads towards its immediate support at $0.78. One can argue that if the coin fails to see strong bullish momentum in the near term, and the resistance level at $1.29 continues to remain unbreached, in the coming week, ADA’s price is quite likely to see a dip, giving traders with short positions an opportunity.
Rationale
The MACD indicator illustrates this bearish sentiment in ADA’s market. The signal line continues to hover quite above the MACD line and after having endured a bearish crossover, there seem to be no signs of a reversal. The RSI indicator concurs and continues to remain in the neutral zone with the indicator heading towards the oversold zone.
Important levels to watch out for
Resistance: $1.29
Support: $0.78, $0.57
Entry: $1.05
Take Profit: $0.78
Stop Loss: $1.26
Risk/Reward: 1.22
Conclusion
The price of ADA needs to breach its immediate resistance in order for its rangebound price action to come to an end. If the coin fails to breach the resistance level in the coming 24-hours then one can argue that a drop to its immediate support at $0.78 is inevitable for ADA. This is likely to happen over the course of the coming week.
