Cardano was on an uptrend during the previous intraday session. It saw one of its largest surges yet as it climbed close to August’s high.
It started the day at $0.36 but saw a massive spike in buying pressure, causing a rapid hike. It broke its fourteen-day high and continued upward, attempting to break $0.40. The peak at $0.3 shows that it failed to break the mark.
Nonetheless, the altcoin saw an over 6% increase in the end. It also marked the second consecutive day of notable price increases, as it gained over 3% the day before.
The asset is currently seeing a small decline as it lost momentum. It retraced to a low of $0.38 after another failed attempt at $0.40.
Cardano Sees Small Momentum Amidst Decline
The one-day chart suggests that ADA will resume its uptrend. One such evidence is the momentum indicator. The metric is still on the rise, indicating that there is some bullish pressure amidst the current decline. It aligns with readings from the relative strength index, which slightly dipped as there was no huge selling pressure.
The average direction index is slightly edging upwards. It illustrates that there is still a high chance the bulls may resume the uptrend soon. MACD prints buy signals amidst the current price trend. This is coupled with long-term prospects, for as the 50-day moving average is also on the rise and may intercept the 200-day MA rise continues.
However, the Bollinger bands hint at a possible downtrend. ADA is currently exchanging above the upper band. Previous price movement suggests such a price trend may signify massive retracements ahead. For example, the most recent surge above the upper band before the current saw the asset drop by over 10% in three days.
Price actions may be different this time as the community is bullish. One reason for this sentiment is the prospect of more activities on the Cardano blockchain. Charles Hoskinson will meet with Argentina’s president to discuss possible integrations that may positively affect the ecosystem and the coin’s price. The meeting will take place in mid-October.
Key Levels to Watch
Vital Resistance: $0.40, $0.46, $0.50 Vital Support: $0.37, $0.34, $0.30
With bullish indicators in mind, it is safe to conclude that the asset will resume its uptrend. The first level to watch is the $0.40 mark. The altcoin has failed to flip it since August. It slipped below the barrier late in July and prices continued below it. One notable trend every time ADA edges close to it is the loss of momentum.
It may flip if it continues to trade close to it. The bulls will look to accumulate around this level, building momentum for the breakout. After breaking the highlighted mark, they will look to test the second pivot resistance at $0.46.
It will be a struggle for the bulls, as the last time this critical saw any attempt was in June. Additionally, it took several days of price accumulation before it finally happened. Prices trended between $0.43 and the mark during this period before the break. October may result in the $0.50 flip.
It is also important to note that the signals from the Bollinger bands may play out in the coming days. It is worth noting that there is significant demand concentration around the $0.37 support. The concentrations saw the asset holdoff above it in recent times, and the same may happen this time.
Nonetheless, a flip could send prices hurdling to retest $0.34. Previous prices suggest that this barrier may hold up against such a test as it did so more than once.
