ADA price trades with a positive bias on Thursday. After opening higher Cardano (ADA) price sustain the momentum and managed to break out the short-term resistance placed at $0.85
- ADA price trades with modest gains.
- A breakout above $0.85 hints at more gains towards $0.95.
- The momentum oscillators look favorable to upside momentum.
ADA price attempts upside breakout
On the four-chart, ADA price completes a ‘Round’ bottom formation. The technical pattern is generally formed in a long-term downward trend. Sellers become exhaustive and look for signs of reversal as the lows are in a very tight range.
Looking at the current price action, the lows kept bounded in the range of $0.75-$0.78 since March 10. Furthermore, the upside capped around $0.80-$0.82. In today’s session, finally, ADA price broke the short-term range as it tests the psychological $0.85 level.
Now, it is interesting to watch if bulls are able to sustain the upside momentum. The recent upsurge also coincides with the crossing of the 50-day SMA (Simple Moving Average) at $0.81. The move is further supported by the above an average volume. This sums up the reliable upside breakout of the trading range.
A sustained buying pressure will first target the crucial $0.90 horizontal resistance level. This will also coincide with the breaching of the 200-day EMA (Exponential Moving Average).
Next, bulls will attempt to take out the ultimate target of $0.95.
On the other hand, a break below the 50-day SMA will invalidate the bullish outlook for the asset. As again ADA price will fall into the familiar trading range with a downside at $0.75.
RSI: The 4-hour Relative Strength Index widens above the average line with a strong bullish bias. It reads at 61.
MACD: The Moving Average Convergence Divergence moves above the midline with an upward bias.
As of publication, ADA/USD is trading at $0.84, up 0.29%. The 24-hour trading volume of eight-largest cryptocurrency holds at $1,204,710,421 as per the CoinMarketCap data.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.