Cardano (ADA) is riding the current bullish wave prevalent across the crypto market as most cryptocurrencies recover. On the day, Cardano is trading above $0.70 amidst improving macroeconomic factors. This uptick in recent price performance has restored optimism around ADA.
Furthermore, the technical indicators point to continued bullish momentum moving forward. However, a breakout above $0.80 is crucial for the bullish momentum to hold as it could signify a shift in the trajectory of Cardano’s price.
ADA Invalidates Bearishness Signaled by Recent Death Cross
According to the daily chart on TradingView, ADA is trading at $0.7047 during the time of writing. This price level comes as a turn around to the Death Cross experienced on Monday April. 7. Notably, on this day the 200-day Exponential Moving Average (EMA) crossed below the 50-day EMA, a formation known as the Death Cross.
The Death Cross is usually seen as a negative signal in technical analysis and signifies impending bearish price movement. However, with Cardano surging past $0.70, this move puts an end to the bearish trend.
If Cardano manages to surge past $0.80, this will invalidate the bearish outlook hence making it the shortest Death Cross in the history of ADA. The recent formation only lasted 16 days. This differs largely with the previous Cardano Death Cross which lasted 56 days, stretching from March to May 2020.
Cardano’s Technical Indicators Point to a Bullish Momentum
The ongoing bullish momentum in the price of ADA is further supported by the technical indicators. Currently, the RSI of Cardano has a reading of 59.09 as per the live data on TradingView. This reading which is above the neutral point at 50 shows that the price of this digital asset could continue moving upwards.
Additionally, the RSI is way below the overbought level at 70. Continued momentum towards 70 will further suggest a stronger bullish rally as buying pressure heightens. However, above 70 the RSI could signify that ADA is overbought hence a retrace will be imminent.
The Moving Average Divergence Convergence of ADA also paints a bullish outlook. As per the chart above, the MACD line has continued to stay above the signal line hence depicting bullish momentum. Currently, the MACD line sits at -0.0063 while the signal line sits at -0.0183, with the two lines diverging further.
Cardano’s histogram is positive hence supporting the bullish momentum. Furthermore, the histogram bars are growing in size and deepening in color (green), hence suggesting continued upward price movement.
Key Levels to Watch in the Price of ADA
Cardano is picking up bullish pace with over 12% surge recorded over the last 24 hours. However, the price of the coin faces resistance around $0.74. If ADA manages to breach this resistance, it could surge towards the next resistance at $0.80. Turning this level into support is crucial for the resumption of a stronger bullish rally.
However, if bulls fail to retain power in the current market, a slip from the recent gains could occur. Cardano has strong support at $0.58 and it is vital for the coin to hold this level. A drop below this support could trigger a plunge towards $0.52 thus invalidating the bullish outlook and wiping out all the recent gains.
