Categories: Market

ADA trades in a tight range and a big move could follow

Cardano (ADA) is attempting a breakout above the descending parallel channel that has formed since the all-time high. If successful, it may retest the resistance of the $ 1.92 to $ 2.38 range.

Until ADA breaks out of this range, the direction of the trend remains undetermined.

  • Key Support Level: $ 1.92
  • Key Resistance: $ 2.38

Daily ADA / USDT Chart | Source: TradingView

Technical indicators

Volume: The volume remains low, especially at the end of the week. However, the breakout on the descending channel was followed by a surge in volume, showing that buyers are still interested in ADA.

RSI: The RSI remains bearish in key time frames (daily and weekly). In the weekly timeframe, the RSI has made a lower high and a clear bearish divergence since February 2021 (yellow arrow).

MACD: The MACD has just formed a bearish cross in the weekly timeframe. This is not a positive sign for the bulls as when this signal appeared earlier it took the pair more than two months to resume its uptrend.

Weekly ADA / USDT Chart | Source: TradingView

Conclude

Technical indicators and price action suggest that ADA could consolidate in the $ 1.92-2.38 range for a while before breaking out.

The longer the range moves, the greater the movement after the breakout. Hence, traders will need to keep a close eye on resistance and support levels in the $ 1.92-2.38 area to benefit from the trend.

You can see the coin prices here.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Cointelegraph

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

18 minutes ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

48 minutes ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

2 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

2 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

3 hours ago

Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns 

Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…

5 hours ago

This website uses cookies.