Cardano is trending up after trading sideways and the coin has now settled above the $0.47 support. The coin is up 7.2% over the past week, but ADA has lost 1% of its market cap over the past 24 hours. After the consolidation, the coin targeted its immediate resistance level.
If the coin continues to hold at its current price level, the bulls can return to the market for a longer period of time. Buyers also appear to be returning to the market, prompting signs of easing in ADA.
If purchasing power loses vitality, the coin can move to $0.45, after which the coin can go as low as $0.40.
Even now, the coin appears to be trading in a tight range, but the break above the $0.49 mark has shown bullish signs. With continued buying power, Cardano can breach the $0.50 price barrier.
Cardano Price Analysis: Four-Hour Chart
ADA is trading at $0.51 on the four-hour chart after breaking out of the consolidation phase. The altcoin’s closest support is at $0.47, but a slight push from sellers could drag the price to $0.40. There is a bullish signal on the four-hour chart.
The uptrend line points to bullish (yellow). A push from buyers could help Cardano rise to $0.52 and then $0.56. To completely invalidate the bearish thesis, the coin traded above $0.56 for quite some time.
Cardano has also seen a surge in trading volume, indicating that buyers are active in the market. The volume bar is green, indicating bullish price action.
Purchasing power has continued to rise over the past few days. The RSI paints the same picture, which is well above the half line. The reading correlates with bullish sentiment as buyers take over the market.
Other techniques also point to buyers taking over. The price of ADA is above the 20-SMA line. The above reading shows that buyers are in control of the price momentum as they are responsible for driving the price higher.
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ADA’s buying momentum is showing positive signs on the four-hour chart. Moving Average Convergence Divergence also describes price momentum and trend reversals. The MACD experienced a bullish crossover and flashing green signal bars.
These green bars are buy signals for the coin, which means there is bullish sentiment in the market. Other indicators also showed buyer strength.
Bollinger Bands indicate price fluctuations and they are parallel on the chart. Parallel Bollinger Bands means that the price of the asset will be hovering in the same price range, which is further indicative of the coin’s continued relief.
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Featured image from UnSplash, chart from TradingView.com