Cardano Sees Resistance at $0.80. Is $1 Inbound or Further Retracement?

Cardano gained a whopping 9% during the previous intraday session. It marks its second and most significant increase in the last twenty-one days.

The coin struggles to continue the uptick at the time of writing. It opened the day at $0.77 and surged to a high of $0.80. It grapples with significant pressure from the bears at $0.78. Currently printing a doji, data from CoinMarketCap shows that the asset is seeing almost the same trading volume as it did during the previous day.

Cardano had a massive spike in volume on Tuesday, resulting in a massive surge. It surged from $0.71 and broke the $0.80 mark for the first time in over seven days.

Why Did Cardano Surge?

Data from Santiment show that the asset is seeing a massive spike in attention across social media platforms including X, Reddit, Telegram, 4Chan, Bitcointalk, and Farcaster. The chart below shows that Cardano (in pink) is the second most discussed cryptocurrency in these platfroms.

Further data from the platform shows a significant increase in whale activity. It stated that wallets holding at least 1 million ADA are consistently accumulating since November 2023, adding 1.41B Cardano, 2.35% of the entire supply in 15 months.”

The consistent accumulation saw ADA’s price increase by over 100% in the last five quarters, affecting its market cap.

Will it Dip Again

The trading volume in the last 48 hours remained higher than a few days ago. However, the cryptocurrency may be losing momentum as volume is down by over 30% in the previous 24 hours. Nonetheless, indicators are pointing to a further uptick.

It is worth noting that the altcoin was oversold a few days ago. The latest uptrend is in reaction to that event as the bulls continue buyback. The relative strength index is currently at 45, indicating room for further increases.

ADA briefly slipped out of the bollinger bands on Feb 3. However, it recovered but stayed closed to the lower band over the next few days. An asset displaying this trend indicates that it is seeing peak selling pressure and due for rebound. The ensuing increase was in response to it. The coin is edging closer to the middle band.

The moving average convergence divergence display massive signals the 12-day EMA is currently in contact with the 26-day EMA. Its bullish convergence nears completion and the divergence will start, causing significant price surges.

The average directional index hints at the downtrend end. It is worth noting that ADX has been on the rise since January. The indicator, which reveals the strength behind a price direction, rose tremendously as prices went downhill. It trends parallel at the time of writing, as buying sentiment returned to the market.

The post Cardano Sees Resistance at $0.80. Is $1 Inbound or Further Retracement? appeared first on Cointab.