Cardano Faces Key Resistance Yet Eyes Potential Breakout
In recent weeks, the price of Cardano $0.725157 (ADA), a favorite altcoin among traders, is struggling to climb above the key resistance level of $0.85. Regardless of indications of a prospective bullish movement, highlighted by an approaching ‘Golden Cross’ signal in technical indicators, ADA is finding it challenging to increase. This is mainly due to a drop in daily active addresses and low volatility, although the coin has shown a robust recovery from local lows and an increase in trading volume. While successfully holding above the 200-day moving average as support, ADA has not yet managed to make its gains long-term following a short-term sag break.
Technical Landscape of ADA Coin Charts
According to data from CoinMarketCap, despite a recorded 30-40% increase in trading volume for Cardano, daily active addresses have visibly decreased. This suggests that large investors at the whale level are accumulating, contributing to reduced price volatility. The decline in individual investor participation has led to ADA’s price being trapped within a specific range. Furthermore, the price is technically still moving within a downward parallel channel formation. Trading above the 200-day moving average, it has not yet broken through the resistance level of this channel, indicating a weakening of strength among the bullish enthusiasts. Even short position liquidations exceeding $800 million have failed to prevent a decrease in active addresses during price increases.
Possible Upsurge Scenario with the Golden Cross
In ADA coin’s price chart, the Relative Strength Index (RSI) has reached an upper limit. Entering the overbought territory could trigger an exit movement from the current price pattern (parallel channel). Such activity could lead to the establishment of a crucial technical signal known as the ‘Golden Cross’ between the 50-day and the 200-day moving averages. Confirmation of the Golden Cross signal is recognized as the beginning of a strong upward trend that could push Cardano’s price above the $1 mark. The weekly candlestick closure holds significant importance for ADA coin. Additionally, failure to maintain a steady rise above the $0.85 level might lead to further extension of the current consolidation period.
