Where to find gains as Cardanos's ADA stabilizes within key range
Cardano’s ADA stabilizes within the key range despite a downturn for the entire crypto market. As ADA rebounded immediately after the price plunge.
Recently on 12 March Cardano hit its lowest price of $0.3020 but it rebounded in no time. The rebound was driven by aggressive buying, pushing the price to break through key resistance levels. This occurred as the Bitcoin BTC price surged to the $26k range.
Some events indicated that the price of BTC determines the future price of Cardano’s ADA. The movements of the price of Bitcoin have a high influence on the price of ADA. The price of Bitcoin experience a sharp plunge at the price of $26k and is now currently trading below $25k. Similarly, ADA hit its price ceiling at $0.368 and began to retrace, pushing it into a critical price range.
ADA once again entered a range where it previously traded in the short term
Previously, ADA had broken through a consolidation range of $0.3306 to $0.3466 during a rally in Bitcoin’s price following the release of US CPI data in February. However, ADA experienced rejection at the $0.3679 price point, causing it to drop back into the same range. Despite this, the price action was in the upper range of the consolidation. This suggests the possibility of a bullish hike if Bitcoin maintains its price level of $24,000 and continues to surge.
Consequently, traders expect ADA prices to keep fluctuating between the range of $0.3306 and $0.3466 before experiencing a plunge. If the range is broken and the price closes above $0.3466, it could signal a bullish trend and push the price toward the overhead resistance at $0.3679. However, traders must overcome hurdles at $0.3513 and $0.3605 along the way.
Moreover, ADA can face severe selling pressure if the price closes below $0.3306. However, if the price of ADA drops, it may slow down or even stop at two possible levels: the “neckline” of the double bottom pattern at $0.3200, or the previous low of $0.3020. Traders could consider these levels as targets for short-selling. Particularly if accompanied by a sharp drop in BTC price of $20k.
The Relative Strength Index (RSI), which measures buying and selling pressure, has moved sideways after dropping from an overbought situation. This suggests that buying pressure has decreased, but there is still a balance between buyers and sellers regardless. Similarly, the Average Directional Index (ADX) shows a downtrend, indicating a possible further consolidation for ADA. Based on the RSI’s sideways movement, one can anticipate that ADA will experience a period of consolidation.
Bulls have limited control
As we know bullish sentiment has the ability to drive the price of crypto higher. In the case of ADA although the bulls are hopeful because of the long/short ratio showing slight leverage on the four-hour timeframe. However, there were still risks from bears and retracement with regard to price.
Despite a wide Bullish sentiment on the funding rate from various exchanges, investors still need to monitor the BTC price to make informed decisions.