Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
Bitcoin was trading at $20.8k and the bearish pressure doesn’t seem to have stopped yet. Cardano has also seen significant sales volume in recent weeks, but over the past four days it appears to have flipped its bias towards bullish. Can buyers continue to push prices up in such a timid market?
ADA-1 Hour Chart
Cardano’s price action on the higher time frames has been bearish. Still, on a lower time frame like H1, a bullish move could take place. Over the past four days, the price has formed a series of higher lows. At the same time, it has also risen to $0.54.
The $0.5 area is a resistance zone for the buyers to overcome. At the time of printing, the $0.5 zone and the $0.54 level represent solid resistance. The move above $0.5 and $0.52 in recent days suggested that there is a bullish lower time frame bias for ADA.
If the price were to form a lower high below USD 0.54 and fall further below USD 0.47, the bias would revert to bearish.
The technical indicators showed a fair amount of bullish momentum. The RSI has faced resistance on the neutral 50 line several times recently, with the exception of a wild rise to 70. At the time of writing, the RSI appeared to be climbing above 50 again.
At the same time, the OBV also climbed. It has made its way past two significant levels over the past week, highlighting that buyers had some strength.
Given the selling pressure across the market, an upward move may not be the safest bet for an altcoin. Therefore, buyers should be careful. A move above $0.54 could cause the ADA to rise to $0.57.
The price action combined with the indicators hinted at a possible upward move for ADA. Still, it should be remembered that the preference for higher timeframes remains bearish.
This post cardano [ADA] bulls have their eyes on these two short-term resistances
was published first on https://ambcrypto.com/cardano-ada-bulls-set-their-eyes-on-these-two-short-term-resistances/