Cardano (ADA) is experiencing a significant resurgence, as bullish activity has successfully countered recent downward movements in the market. Following a temporary pullback, the cryptocurrency is gaining momentum, reigniting optimism among both traders and investors. As the market trends upward, there is growing speculation about whether ADA can maintain this positive trajectory and reach new heights, particularly eyeing the target of $0.4233.
The latest price movements reflect a strong bullish trend for Cardano. Analysis of the 4-hour chart indicates that the cryptocurrency is trading above the 100-day Simple Moving Average (SMA), marked by several consecutive green candlesticks. Sustaining this price level suggests that bulls have a significant grip on the market and may drive further gains if the upward trend continues.
Additionally, the 4-hour Relative Strength Index (RSI) has shown a noteworthy rise, climbing from 53% to 63%. This increase indicates a growing bullish sentiment, highlighting that buying pressure is intensifying within the market. Although the RSI remains below overbought levels, this upward movement signals heightened demand, potentially leading to further price increases.
On the daily chart, Cardano is actively trying to breach the critical 100-day SMA, which serves as a pivotal resistance level. A successful breakout above this SMA could indicate a stronger bullish trend, boosting investor confidence and attracting additional buying activity. Currently, the daily RSI is positioned at 53%, which indicates a bullish tone, as it sits above the pivotal 50% level.
In the coming days, traders should keep a close eye on key support and resistance levels. The immediate resistance level at $0.4233 is crucial; a breakout here could signify a shift toward a more robust uptrend. Should ADA surpass this level, the next notable resistance stands at $0.5229. Conversely, if bulls struggle to maintain momentum, the critical support level to monitor sits at $0.3389. A drop below this level may lead to further declines, with potential downward pressure extending toward $0.2388.
