Cardano (ADA) Coils at $0.88: Breakout or Fakeout on the Road to $1.20?

• Cardano is currently hovering at $0.82.
• ADA’s trading volume is up by over 90%.

The crypto market cap has been stationed at around $3.78 trillion, with the majority of the tokens charted in red. Largest asset, Bitcoin (BTC), is losing momentum, trading below $110K, while Ethereum (ETH), the largest altcoin, is trading on the downside at $4.4K. Among the altcoin pack, Cardano (ADA) has recorded a drop of over 0.12%. 

The asset opened the day trading at $0.82. With the bearish pressure, the price has plunged to a low of $0.7964. Later, after the brief bullish presence, ADA climbed to a high of $0.8427. At the time of writing, Cardano traded at around $0.8211, according to CMC data. 

Notably, the asset’s market cap stays at $29.26 billion, with its daily trading volume having surged by over 90.59%, reaching $1.28 billion. In addition, the market has seen an event of $3.31 million worth of Cardano liquidated in the last 24 hours, as per Coinglass data.

Furthermore, the Ali chart reveals that Cardano is trading in an upward channel. The asset needs to break the $0.88 resistance to confirm bullish momentum. If broken, the price could rise to $1, then hit $1.20, a major Fibonacci extension. If ADA fails, it may retest the support at $0.76–0.78 before attempting another breakout.

Is the Bullish or Bearish Case Stronger for Cardano?

Both the Moving Average Convergence Divergence line and the signal line of Cardano are stationed below the zero line, showing overall bearish momentum. However, with the MACD line above the signal line, it indicates that the downtrend is easing and may be a short-term bullish crossover forming. 

Besides, the Chaikin Money Flow (CMF) indicator of ADA is at 0.04, suggesting slight buying pressure in the market, with weak capital inflow. The value is positive, but it is close to zero-neutral to bullish sentiment, not strong enough to confirm an uptrend. 

Cardano’s daily Relative Strength Index (RSI) at 45.25 signals a neutral momentum, showing neither strong buying nor strong selling pressure. A move above 50 could hint at growing bullish momentum, while a drop below 40 may point to increasing bearishness. Moreover, the Bull Bear Power (BBP) value of 0.0152 implies the bullish dominance. With the weak strength, the price action could shift quickly.

If the uptrend of ADA strengthens, the price might move up and find the initial resistance at the $0.8218 level. More pressure on the upside correction could trigger the golden cross to take place, and the price may go up above the $0.8225 range. 

Assuming Cardano’s price reversal, the bears might push the price down, testing the support at around $0.8204. Further correction on the downside brings in the death cross, which potentially pushes the price toward its former lows below $0.8197.

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