The Cardano market has been rallying higher since the beginning of the year. It has witnessed 504% growth since the beginning of the year. ADA market was noted a surge as it traded at $1.24, at the time of press.
Cardano’s strong fundamentals and the development taking place in its ecosystem has maintained its value above $1.
Cardano four-hour chart
Source: ADAUSD on TradingView
The Cardano price was hitting a peak at $1.56 after which it collapsed. Although the selling pressure pushed the price under $1, ADA recovered from this fall and was now trading at $1.23. As the price tried to reach the next resistance at $1.28, the market was gaining more bullish strength.
Reasoning
The ADA market was volatile at the time of writing and it was only rising as indicated by the divergence of Bollinger bands. The signal line slipped under the candlesticks and could offer support if the price took a U-turn.
Meanwhile, Relative Strength Index was at 58, suggesting the digital asset was moving away from equilibrium as buying pressure was rising. ADA remained close to the oversold zone for the past week, but the charts indicated a change in the trend as it was trying to achieve equilibrium at this price level. The momentum has moved to the positive side as indicated by Awesome Oscillator and this could be the time ADA tests the resistance.
Conclusion
The price at $1.23 witnessed a tussle between buyers and the sellers. A test of the resistance could fail but the price may not see a major correction and hold on at $1.20.
