Cardano Faces Key Resistance—Could Bulls Trigger a Breakout or Is a Pullback Inevitable?
The post Cardano Faces Key Resistance—Could Bulls Trigger a Breakout or Is a Pullback Inevitable? appeared on BitcoinEthereumNews.com.
Cardano (ADA) is currently testing a pivotal resistance level that could determine its immediate price trajectory amid strong bullish signals. As highlighted by recent trading patterns, ADA’s resilience above critical moving averages indicates robust bullish sentiment, even amid market volatility. “ADA’s derivatives Open Interest rose by 16.63% to $739.86 million,” flagged by COINOTAG, reflects a surge in market engagement and trader confidence. Cardano’s price action is at a breaking point, testing key resistance levels while derivatives data shows heightened trader interest. Is a breakout imminent? Can Cardano maintain its bullish edge? Cardano has shown remarkable strength by continually trading above its 20-day, 50-day, and 200-day EMA, a sign that it retains a strong bullish edge despite ongoing consolidation. This price behavior indicates that buyers are still active, especially with ADA’s strong rally of 270% from early November to early December, and its recent price action appears to form a bullish flag pattern on the daily chart. Source: TradingView, ADA/USDT At present, ADA trades near a critical resistance level of **$1.03**. A close above this threshold could confirm the bullish flag breakout, propelling prices towards the **$1.21** target, which aligns with long-term trendline resistance. Conversely, a retreat below **$0.80** could invalidate bullish scenarios and lead ADA toward its **200-day EMA** at **$0.62**, indicating potential weakness. The daily Relative Strength Index (RSI) hovers around **52**, signifying moderate bullish momentum. A sustained position above the midline could facilitate further gains by allowing bulls to target immediate resistance levels in the upcoming sessions. Notably, ADA’s 24-hour trading volume has surged past **$1.7 billion**, reflecting almost **12%** gains in the last day, a favorable scenario for short-term traders looking for opportunities. Derivatives data revealed THIS Source: Coinglass According to the latest reports, Cardano’s derivatives Open Interest has climbed by **16.63%** to **$739.86 million**, signaling a…
Filed under: News - @ January 3, 2025 9:18 am